Zambia is set to conclude its tests for a regulatory framework for digital assets by June, according to the country’s Science and Technology Minister, Felix Mutati. The country had previously announced in February that it was testing a technology that would provide the basis for digital asset regulation. Mutati noted that the government aims to protect investors with the new framework while still enabling innovation in digital payments. The tests have been conducted with the Securities and Exchange Commission and are designed to allow regulators to see what would happen in the real world in order to formulate regulations.
Minister Felix Mutati has said that he hopes for Zambia to become one of the first African countries to regulate digital assets, as it seeks to balance innovation in digital payments with ensuring citizens’ safety.
According to Mutati, the move to regulate digital assets in Zambia has been driven by an increased appetite for investment in the country, While Zambia is not one of the top 10 African countries for digital asset volume, the government believes that combining them with other digital payments could be the solution to financial inclusion. Cryptocurrency can be a driver for financial inclusion and a change maker for the economy, Mutati said previously.
The Zambian Central bank is also researching a central bank digital currency (CBDC), which could reduce transaction costs and increase financial inclusion in the country.