Zambia is testing the proper functionality of crypto regulatory technology

In a move to regulate the crypto industry in Zambia, the government has started testing new technology, according to one announcement from Technology and Science Minister Felix Mutati.

The Securities and Exchange Commission of Zambia and the Bank of Zambia are the primary drivers of this development. Both parties work together to ensure the functionality of the political framework and infrastructure for digital currency regulation.

Zambian authorities are testing crypto regulatory technology

Mutati stated that the technology would allow the Bank of Zambia (BoZ) to monitor and test crypto-related services before they enter the market. Moreover, this new technology will help the central bank establish a regulatory framework for the cryptocurrency industry.

Mutati suggests the technology will help the Bank of Zambia better understand how the cryptocurrency industry operates and how to regulate it effectively. He believes that the government recognizes the industry’s importance and wants to ensure proper regulation to protect consumers and investors.

Mutati claims that digital currencies are the future of Zambia’s economic space, an achievement the country still wants to achieve. This is where the policy framework comes in, as it will facilitate revolutionary technology. Furthermore, the minister noted that this recent government effort is to ensure that Zambia becomes a hub for digital currency technology in the whole of Africa.

The Minister of Technology and Science also cited that the government is working with the private sector to establish the regulations for the industry. This is in line with efforts to attract investment and promote economic growth in the country.

Africa on the way to becoming a crypto hub

Africa has seen significantly growth in crypto adoption in recent years, and Zambia is no exception to this growing trend. Also, more people are turning to cryptocurrencies as a way to store value and transact. The Zambian government’s move to regulate the industry comes in response to the growing demand and the need to protect investors and consumers from the potential risks associated with cryptocurrencies.

Before now, Zambia’s government signed an agreement with a blockchain subsidiary (Overstock) in 2018. The essence was to work with Zambian authorities to restructure land ownership by providing digital certificates of ownership through a blockchain-based land titling program.

Meanwhile, other governments are more interested in digital currencies in several African countries. An example is CBN (Central Bank of Nigeria) is considering creating a regulatory framework for initial coin offerings (ICOs) and stable digital tokens (stablecoins).

Furthermore, the IMF (International Monetary Fund) showed interest in Africa’s digital currency market regulation in November 2022. This move came in response to the continuous growth of the crypto industry in the region.

Meanwhile, the move by the Zambian government to test new technology to regulate the cryptocurrency industry demonstrates a commitment to security in the crypto space. The development will also provide a clear regulatory framework for the sector and increase investor confidence, which leads to increased investment in the country.