Zimbabwe’s Central Bank Examines CBDC, Reiterates Crypto Opposition

According to an announcement made by Zimbabwe’s central bank on Thursday, the country is currently considering launching its own central bank digital currency (CBDC). The bank also stated that interest in its regulatory sandbox persists.

An Outline of the CBDC Development Process

Reiterating its preference for a central bank digital currency (CBDC) over cryptocurrencies, Zimbabwe’s Reserve Bank of Zimbabwe (RBZ) issued its latest monetary policy statement. A Zimbabwean CBDC, including specific design considerations, is presently being “actively explored” as an option.

John Mangudya, the bank’s governor, stated in a statement that the RBZ is already preparing a plan for its CBDC. The following is what the statement says:

“In this context, the Bank is developing a clear roadmap for adopting CBDC, encompassing the feasibility and assessment stage currently taking place, policy design stage based on results of the feasibility study and implementation modalities.”

According to the RBZ, the CBDC programme will be updated on a regular basis.

Regulated Sandbox for Fintech

Additionally, the RBZ stated that its fintech regulatory sandbox, which was opened in March 2021, has received “112 registrations on the online site and a further 31 applications at various stages,” according to the statement. Only 48% of what the bank calls “registered users” work in the software and systems development industry, according to the central bank.

One-eighth of all registered users belong to the payments category, whereas just 8% and 1% belong to the banking and savings and deposit categories, respectively. Other activities like as capital raising, investment management and lending make up the remaining 25%.

In the meanwhile, the RBZ states that the sandbox is still available for new ideas, and that instructions for potential candidates may be found on the website of the organisation.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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