TL; DR breakdown
- Zimbabwe begins consultations on accepting bitcoin as legal tender.
- It wants to use bitcoin and the Chinese blockchain to its advantage.
- Chainalysis reports a 1,200% increase in the African digital currency market.
Demand for digital assets around the world has grown exponentially thanks to significant asset growth. While some countries are still working on regulations and acceptance of crypto, others are planning to accept it. According to reports from Africa, Zimbabwe is the last country to turn to digital assets. Digital assets have been in high demand across the country, in the hope that the sector will grow through the revenue generated. Previously, the government was silent about regulating the crypto market, which is now being done.
Zimbabwe benefits through bitcoin
According to a local news station, the country wants to make bitcoin a legal currency nationwide. The Zimbabwean government intends to meet the high demand for digital assets and use China’s blockchain technology to its advantage. A recent statement by Colonel Charles Vicot, a member of the government’s technology unit, confirmed the story.
According to Wekwete, negotiations are currently underway with consultants and professionals in this area. Wekwete also noted that the use of Chinese cryptocurrencies and blocks could open the country to many of the problems posed by this sector. He said the government is wary of illegal activities ranging from money laundering to hacking and fraud and other dangers. However, he noted that regulators are currently developing a framework that guides the sector’s activities, protects users and contributes to the country’s financial future.
Africa is witnessing 1,200 percent growth in the digital currency market
As in previous traditions, the government is currently consulting with other parts of the country and awaiting their views on policy changes. According to an official, despite the work being done, the government has not yet made any progress in making decisions. Zimbabwe recently announced that it would adopt a digital economy framework. This framework will help increase partnerships between government and investment to improve the country’s digital economy.
Most countries now follow El Salvador in accepting bitcoin as a medium of exchange. Although many languages have criticized, the government has pledged not to back down. President Nayib Bukele recently noted that the plan is being implemented and that bitcoin proceeds will be used to build a hospital and about 20 schools in the country.
Africa has proven to be one of the best places to test cryptographic innovations. Most investments have created services that help individuals and businesses connect with people abroad for cross-border payments. A recent Chainalysis report noted that Africa saw a 1,200 percent increase in its digital currency market between July 2020 and June 2021. The main participants are said to be Tanzania, Kenya, South Africa and finally Nigeria.