APA-Lusaka (Zambia) Zambia is finalising tests that could see the southern African country rolling out cryptocurrency regulations by the end of June, according to reports monitored here on Thursday.
Quoting Zambia’s Science and Technology Minister Felix Mutati, the reports said the Lusaka authorities are planning to finish tests that simulate real-world cryptocurrency usage over the next two months to help it create regulations that balance citizens’ safety with innovation, science and technology.
Mutati said Zambia requires digital infrastructure – including digital identities – before cryptocurrencies can be introduced.
“The central bank is simulating that to see what would happen in the real world. The results will assist us (in) the formulation of the regulation,” Mutati is quoted as saying.
He said the tests are necessary to strike a balance between innovation and the safety of citizens when it comes to digital payments.
The collapse of the world’s third largest crypto exchange FTX and subsequent plunge in the prices of Bitcoin and other major crypto assets have prompted renewed calls for greater consumer protection and regulation of the crypto industry.
Regulating a highly volatile and decentralized system remains a challenge for most governments, requiring a balance between minimizing risk and maximizing innovation.
JN/APA