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Zimbabwe debunks report it would adopt Bitcoin as legal tender

Zimbabwe

TL;DR Breakdown

  • Zimbabwe says it is not adopting Bitcoin as legal tender.
  • Govt says it is open to CBDC and not crypto.

Zimbabwe has refuted a report that the government are in line to follow El Salvador to adopt Bitcoin as a legal tender. The government debunked the news in reaction to rumors that they have begun consultation and maybe the next country to adopt BTC.

As they debunked the news, they reiterated that its Zimbabwe dollar (ZW$) would remain its only legal tender and official currency. They noted, however, that the country is open to a Central Bank Digital Currency (CBDC) but not cryptocurrency.

Purported plans Zimbabwe had for Bitcoin

Local report stated on Tuesday that Zimbabwe wants to make Bitcoin a legal tender across the country, sighting a recent statement by Rtd Brigadier Colonel Charles Wekwete, a member of the government’s technology unit, to have confirmed the story.

According to Wekwete, there are presently holding talks with consultants and businesses as to this effect. We were also mentioned that adopting crypto and blockchain could open the country to many ills that come with the sector. He said that the government is wary of illicit activities ranging from money laundering to hacks and scams, among other risks. However, he mentioned that regulators are presently drawing up a framework that will guide the activities of the sector, protect users and help the financial future of the country.

Yes to CBDC, No to Bitcoin

Zimbabwe’s Minister of Information, Publicity, and Broadcasting Services, Monica Mutsvangwa, also dismissed the claims while addressing the Cabinet meeting yesterday and was quoted saying that cryptocurrency would not be a local currency.

“Like most countries in the world, the Government of Zimbabwe, through its Financial Technology Group, is studying Central Banking Digital Currency as opposed to cryptocurrencies, Bitcoins or any form of derivatives.”

Zimbabwe’s openness to a CBDC rather than crypto is somewhat expected as regulators around the world are exploring the same avenue in response to the burgeoning cryptocurrency industry.

Many African countries are also working on floating a CBDC as Nigeria recently launched its e-Naira and Ghana set to pilot its e-Cedi.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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