Zambia’s central bank maintains the fact that cryptocurrencies such as bitcoin aren’t yet legal tender in their country. The Bank of Zambia (BoZ), responsible for initiating and adopting financial policies for the world’s 105th prominent economy, defined their position in opposition to the usage of cryptocurrencies in comparison to the expanding general public interests in the field.
The central bank admitted that it was getting a lot of inquiries related to Bitcoin’s legitimate position in Zambia, and they had to protect the interests of members of the public and to uphold the credibility of the financial system” with its official position on the digital currency, according to a local news report.
The Bank of Zambia reported sources from their financial constitutions, identifying Section 30 as the main obstruction that holds Bitcoin and equivalent digital assets from achieving a legal tender position. Also, the bank agreed that they had no constitutional power to disfigure or prohibit the localized crypto market under the current legal framework.
Excerpts: “Firstly, Section 30 of the Bank of Zambia Act vests the right to issue records and coins exclusively in the BoZ. To date, BoZ has not released any form of cryptocurrency. Cryptocurrencies are not yet legal tender in the Republic of Zambia; Secondly, BoZ does not supervise or control the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are conducted at owner’s risk.” furthermore, BoZ released a public-interest caution equivalent to those revealed by its international associates in the past.
The bank said that the investors ought to be aware of the risks associated with the use of cryptocurrencies. It added money laundering, consumer security (related to hacking and scam) and the act of terrorism financing to its statement, reminding that they will not be able to offer any legal recourse to crypto users if they get exposed to any of such online criminal activities. The constitution of Zambia does not define Bitcoin, which is why it has received an attack from the country’s central bank. There is, nonetheless, a chance of lawmakers getting an active approach to regulating it under an improved provision.
BoJ verified that it would be actively searching into cryptocurrencies to come up with a law that “should not restrain but facilitate innovation.” Currently, the Zambian crypto community doesn’t necessarily represent any significant trading activity to the global crypto volume. The country does not have an active localized exchange, and the local crypto traders mainly depend on either foreign crypto exchanges or peer-to-peer desks to conduct their dealings. It likely due to the insufficiency of crypto understanding in a country where only 11.6 per cent of people have an internet connection, based on a World Bank report.