Zambia's crypto regulatory trials will be completed by June, according to a report

By: Mark Jessy

April 13, 2023 6:38 AM

Minister of Information and Communications Technology Felix Mutati has stated that crypto will not be implemented in Zambia until digital identities and other digital infrastructures are in place.

By simulating actual cryptocurrency use, the cryptocurrency regulation tests in Zambia that aim to inform the country's crypto laws are on schedule to conclude in June.

According to an interview with Reuters→ published on April 12th, Zambia's minister of innovation, science, and technology Felix Mutati stated that the tests were carried out so that the government could "see what would occur in reality" when drafting crypto rules.

Mutati, head of Zambia's central bank and securities regulator, stated that the tests, which kicked off on February 19th, were designed to strike a balance between security and experimentation.

"Our main objective in the sector of cryptocurrency is to create a balance between innovation in terms of digital payments [...] and people' safety, especially considering the volatility of crypto."

Mutati added that the introduction of cryptocurrencies would have to wait until digital identities and other digital infrastructures were in place.

With the majority of its debt owed to Chinese creditors, Zambia's debt restructuring procedure has been "far delayed," but according to Mutati, this hasn't discouraged investment.

"What we're witnessing is a greater willingness to invest in Zambia."

As the COVID-19 pandemic broke out in 2020, Zambia was the first African country to default. According to a second Reuters article→ published on April 12, Treasury Secretary Felix Nkulukusa warned that postponing the debt restructuring could cause the country to forfeit the benefits of its macroeconomic reforms.

Mutati predicted that "through digital payment systems, citizens will become much more included in digital financial services" when he first declared on February 19 that the country will be evaluating technologies for crypto regulation.

He went on to say that "cryptocurrency would be a driver for financial inclusion and a game changer in Zambia's economy."

In recent years, crypto adoption initiatives have been launched in many African countries.

In April 2022, the Central African Republic→ a regulatory framework for the usage of cryptocurrencies, including the recognition of Bitcoin as legal tender.

Notwithstanding a ban on crypto activity in 2021, the Nigerian government is reportedly→ planning to introduce a new law that will recognize "cryptocurrency and other digital monies as capital for investment" in the near future (Dec. 18).