Joining the list of African countries adopting blockchain technology, John Mangudya, governor of the Reserve Bank of Zimbabwe (RBZ), has announced that the bank has developed a road map for the adoption of Central Bank Digital Currency (CBDC).
Zimbabwe is now among other countries that have shown interest in establishing CBDCs. Some of those countries include Nepal, China, India, and Australia. Here is what you need to know about Zimbabwe’s move toward CBDC adoption
Development of the Roadmap
In the August 11 mid-term Monetary Policy Statement, Mangudya announced the progress of their road map. The roadmap was previously developed in line with the government’s decision in November 2021.
Mangudya, however, stated that the Reserve Bank of Zimbabwe is looking forward to getting the views of the stakeholders, which is the public. The bank will release a public consultation paper that will foster “a broad and transparent public dialogue regarding the potential benefits and risks of CBDC”. The public will have a 90-day window after its release to give its views.
In addition to that, the Reserve Bank of Zimbabwe will also carry out a consumer perception survey on the same. The findings will be the blueprints for designing pilot programs on CBDC in the country.
Companies Admitted into Fintech Regulatory Sandbox
Moreover, Mangudya revealed that two fintech companies: Lloyd CrowdFunding and Uhuru Innovative Solutions are now part of the fintech regulatory sandbox. While Lloyd CrowdFunding has already begun operations, Uhuru Innovative Solutions is yet to commence. The admission of the two companies and the regulatory testing was to show the Bank’s dedication to “promoting responsible innovation.”
The results of the sandbox operations will provide the Reserve Bank of Zimbabwe with the necessary information needed when forming an appropriate regulatory framework for financial technology in the country.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.