Although Cryptocurrencies are perceived as a major innovation in the financial world, they are more of a nightmare for Zambia’s apex bank. This leads us to asking why Cryptocurrencies are currently enduring tech rave before most African countries apart from the Zambia’s apex bank. We were all surprise to learn that the Zambian Central Bank has warned against the use of cryptocurrencies like Bitcoin.
Note that Cryptocurrencies are not recognized by the Zambian Financial System. With this in mind, the Central Bank addressed the people saying that trading in or using Cryptocurrencies is at every users’ own risk given that there is no legislation governing its use. That is to say that all cryptocurrencies in Zambia are still unregulated.
However, chances are high that Zambia reviews its position in times to come concerning the adoption of digital cryptocurrencies. Most of her neighboring countries are moving from a perplex stands into a more encouraging and reassuring one. That’s why we believe that its possible that the Zambian Central Bank withdraws its words in times to come upon seeing the success brought to the neighboring countries by cryptocurrencies. Nigeria and Kenya which are two of the African continent’s largest economies have moved from their skeptical stance of warning banks against the use of digital currencies and comparing them to deadly pyramid schemes to apparently researching policy proposals and benefits surrounding Cryptocurrency trading.
Although Cryptocurrency trading is rapidly growing in countries like Nigeria and Zimbabwe, most African governments are still playing a “waiting game” when it comes to the legislation of digital currencies. It is without doubt that their actions are resulting from uncertainty about the authenticity of the financial innovation brought by digital currencies. Although they are resistant to embracing this innovative technology in the financial world, most of their citizens have already embraced and openly revealed that they are active users of digital currencies. Note that while Zambia just warned against digital currency trading, Namibia went up to the extent of banning its use. Luckily enough that they are gradually gaining consciousness of the benefits offered by digital currencies. Thus, we can expect a change of decision any moment from now.