Zimbabwe not considering adopting cryptocurrency

Zimbabwe has poured water over the rumour that it is is looking at adopting cryptocurrency.

In a post cabinet briefing, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said, “Government is not considering introducing cryptocurrency.

“Like most countries in the world, the Government of Zimbabwe through the Financial Services (FINTECH) Group, is studying the Central Banking Digital Currency(CBDC) as opposed to cryptocurrency, bitcoins or any form of derivatives,” she added.

There had been speculation that Zimbabwe was considering going that route. Not so, Mutsvangwa said, “The nation is assured that Government is not considering introducing another currency in the economy as reported in the media. The local currency remains the Zimbabwe dollar (ZW$) and not cryptocurrency’.

The nation is assured that Government is not considering introducing another currency in the economy as reported in the media. The local currency remains the Zimbabwe dollar (ZW$) and not cryptocurrency#postcabinetbriefing pic.twitter.com/w5eQhxeufM
— Ministry of Information, Publicity & Broadcasting (@InfoMinZW) November 9, 2021

Cryptocurrency has been slowly gaining traction among some Zimbabweans, with lobby groups appearing on the Internet.

About Central Banking Digital Currency

A Central Bank Digital Currency (CBDC) is the digital form of a country’s fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or accounts backed by the full faith and credit of the government.

Think of CBDC as the future of bank notes.

90% of central banks in the world are currently exploring creation of CBDC. China is furthest down the road and is already testing it with tens thousands of citizens.

with information from Atlantic Council