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We all know that the Central American country of El Salvador became the first country to adopt bitcoin (BTC) as the legal tender. That said, it looks like an African country is likely to follow suit.
The landlocked country of Zimbabwe is in the spotlight as of late after it was learned that they’ve been looking for avenues in making cryptocurrencies a legal tender. Just like El Salvador, they too are considering bitcoin to cater for their financial activities.
Bitcoin talks are underway
Reports are suggestive that the country’s head of the cabinet’s e-government technology unit – retired Brigadier Colonel Charles Wekwete has confirmed talks with business entities are currently being carried out adding that they’ll be making a decision about it real soon. No definite date as to when such a decision will be announced though.
Wekwete – a retired army man – also revealed that the Zimbabwean government has set up a mechanism in an attempt to collect views from different sectors of society for them to come up with policies.
Wekwete also addressed concerns regarding the so-called “cross-border movement of funds.” In line with this, the unlawful flow of funds alongside money laundering are just some of the bullet points that have urged the country’s regulators and nations to be very wary in opening up to the world of cryptocurrency.
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Cryptocurrency worries
He said that governments are still trying to comprehend and attempting to devise policies on how to deal with crypto. Wekwete added that on their end, they’re trying to know first the implications that will be brought upon by cryptocurrencies since, according to him, this is a fundamental departure from the traditional financial instruments that Zimbabwe and the rest of other countries are still using. Admittedly the official stated that there are a lot of worries about the above-mentioned cross-border movement of funds, illegal flow and externalization of funds, and even money laundering.
In Africa, cryptocurrency adoption has skyrocketed by 1,200 percent between July 2020 and June of this year. Further, such instances were heavily observed in South Africa, Tanzania, Kenya, and Nigeria.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
