The government of Zimbabwe has announced an initiative to gather public input on cryptocurrency operations as it develops regulatory policies for the sector.
Consequently, this effort is part of a broader attempt to align with global trends and best practices in cryptocurrency management.
Zimbabwe has asked for public input on cryptoasset operations as it works on regulatory policy for the sector https://t.co/lPKkTBLrWY
— Bloomberg (@business) June 12, 2024
In a statement published in the state-run Herald newspaper, the Zimbabwean government has called on all cryptocurrency service providers, both domestic and international, to provide comments and feedback. The government emphasizes the importance of understanding the cryptocurrency landscape to formulate effective regulations.
Moreover, the consultation process involves a newly established committee tasked with engaging operators within the virtual asset ecosystem. The deadline for comments has been set for June 26.
Historical Context and Recent Developments
Zimbabwe has a turbulent financial history, marked by hyperinflation and currency instability. Last year, the government introduced a gold-backed virtual token to stabilize the economy. In April, Zimbabwe launched a new currency, ZiG (short for Zimbabwe Gold), in a bid to establish a stable local unit. This marks the sixth currency change in 15 years, following the repeated failure of the Zimbabwean dollar, which was reintroduced in 2019 but succumbed to severe inflation.
The country’s ongoing financial difficulties are exacerbated by its exclusion from international capital markets since 1999, following a default on its debts. Zimbabwe is currently attempting to restructure approximately $19.2 billion owed to creditors, including $13 billion to international investors.
In May, Zimbabwe’s statistics agency began computing inflation using ZiG as the base. The shift to a new currency unit has shown some positive signs, with consumer prices falling by 2.4% from April to May. However, inflation remained high at 57.5% in April, calculated using a blended measure of the defunct Zimbabwean dollar and the US currency.
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