Zimbabwe’s information minister has publicly denied rumors that the country is considering adopting cryptocurrencies such as Bitcoin (BTC) as legal tender. Minister Monica Mutsvangwa asserted that the Zimbabwean government is eager to try out a central banking digital currency (CBDC).
Zimbabwe considering developing CBDC
The speculation regarding Zimbabwe adopting cryptocurrency was started by many reports quoting Charles Wekwete, the president’s permanent secretary. The reports suggested that the government was discussing with private sector enterprises to assist in implementing cryptocurrency in the country.
Just a day following the reports, Mutsvangwa said in a cabinet briefing that the claims about Zimbabwe adopting crypto were not true.
She said, ”Government would like to assure the nation that it is not considering introducing another currency in the economy as reported in some sections of the media. Our local currency is the Zimbabwe dollar (ZW$) and not cryptocurrency.”
Furthermore, the minister highlighted that the Zimbabwean government is following in the trend of other nations by researching “CBDC as opposed to cryptocurrencies, bitcoins, or any other kind of derivatives.”
It is vital to remember that CBDCs are digital tokens issued by a government’s central bank. The digital tokens will be tied to the Zimbabwe dollar with the monetary value of the domestic currency in real-time if they are launched in Zimbabwe.
Governments across the globe are studying with retail and wholesale CBDCs to find more cost-effective cross-border payment options while also improving the ability to monitor cross-border transactions to prevent money laundering and other illegal activities.
African countries considering CBDCs
Many African governments are now considering CBDCs as a way to accelerate their financial inclusion efforts. Ghana is the most recent African country to join the increasing list of countries experimenting with CBDC use cases.
The e-cedi, a CBDC built by the Bank of Ghana, will handle offline transactions.
“The e-cedi would be capable of being utilized in an offline environment using some smart cards,” says Kwame Oppong, the bank’s director of fintech and innovation.
Ghana’s CBDC’s offline transaction feature intends to accelerate the technology’s adoption in areas where energy and internet connectivity are scarce.