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- The decision has come at a time when cryptocurrencies are scattering their roots across the globe, experiencing both risks and opportunities.
- Mutepfa during a conference in Bulawayo stated that RBZ has already started to work on fintech framework as, during regulation, everything should be well designed.
- The crypto market is largely tapped by the youth and in most cases, they face challenges of having capital.
The Deputy Director of the RBZ Financial Markets and National Payments System at the Central Bank of Zimbabwe, Josephat Mutepfa has recently announced that that RBZ has initiated to offer a fintech structure to monitor the operation of fintech companies.
The decision has come at a time when cryptocurrencies are scattering their roots across the globe, experiencing both risks and opportunities. The apex bank has warned the investors against fraudulent activity in trading currencies. However, it is known that the trend is truth and emphasized the need to regulate such practices.
The RBZ’s Deputy Director on Cryptocurrency
Mutepfa during a conference in Bulawayo stated that RBZ has already started to work on fintech framework as, during regulation, everything should be well designed. The framework is a regulatory sandbox, and cryptocurrency companies have to pass through the regulatory sandbox for review.
Mutepfa further pointed out that the fintech ecosystem has gone through a challenge of capitalization of the cryptocurrency market, thus, it is necessary to introduce the sandbox.
The crypto market is largely tapped by the youth and in most cases, they face challenges of having capital. The challenge was that earlier the currency was a prime asset of central banks which was than overtook by digital currencies that operate globally.
The majority of people are still not aware of the functions of the digital financial economy. A local cryptocurrency-based trading association, SPURT, is performing a good business out of the model.
Brian Maseva, a business advisor of SPURT said that central bank’s regulations will work as a support system for cryptocurrency to grow in Zimbabwe financial ecosystem.
About how sandbox will function
The minute you pass in the sandbox, you either exist as an authentic product to boom the market or asked that your product needs to be licensed like a microfinance company. Or else, you need to partner with a bank, a mobile money platform.
The sandbox will be a test zone. After the sandbox, there will be an application standard, which will also work in the same ability as the sandbox.
Currently, Zimbabwe has widened its arms in various sectors, especially in payments and trading, insurance and virtual currency.
Moreover, the practice of cryptocurrencies is related to massive risk and the central bank is looking for a system of approving them.
