Zimbabwe is one of the latest countries to take bitcoin as a legal tender. Currently, it is doing talks concerning the increase in demand for crypto and its risks. It is open to regulating the sector as it has a potential avenue for growth.
The country faces a growing demand for Bitcoin and is considering legalizing it for legal payments and harnessing the technology. Local news confirms that there are talks underway to legalize the currency to be used in businesses.
According to the permanent secretary and head of the president’s office, Charles Wakwete, there are many disadvantages of decentralization such as money laundering, unregistered cross-border transfers, externalization of money, and illegally acquired cash flow being used for illegal activities. It is, therefore, crucial that there are regulations in place to protect consumers for a bright financial future. This is why the government sought to regulate the industry with help from different sectors. However, the official has clarified that the country is still in the consultation stage and has not made any significant declarations yet.
As a National Development Strategy, Zimbabwe has decided to use the digital economy framework. This will help the government and business efforts to connect for a vibrant digital economy.
El Salvador is one of the leaders in adopting Bitcoin use and regulation, and many countries are emulating that. Even though many criticized the move, El Salvador threw a deaf ear on backing bitcoin legislation. Salvador president Nayib Bukele tweeted that the action is a success, and they plan to use the Bitcoin earnings to build 20 schools and a hospital.
Bitcoin may be a solution to the worst-hit economies such as Venezuela and Zimbabwe. Africa as a continent is ripe for cryptocurrencies. It has been widely embraced for cross-border payments for sending and receiving money from abroad. This explains why cryptocurrency adoption is snowballing in Africa. According to Chainalysis, from mid-2020 to mid-2021, the cryptocurrency market grew by 1200%. The main countries are Nigeria, Kenya, South Africa, and Tanzania.
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