Zambia is working on a new set of cryptocurrency regulations that will balance citizens' safety with innovation, with tests that simulate real-world usage expected to conclude by the end of June, according to Zambia’s science and technology minister, Felix Mutati.
The country's central bank is running simulations to determine what could happen if cryptocurrencies were introduced, with the aim of achieving a balance between digital payments and citizen safety, particularly given the volatility of cryptocurrencies.
Then, the results will help to form the crypto framework to regulate cryptocurrencies in the country.
Zambia becomes the latest African country that is considering regulation of crypto. In 2021, Nigeria banned banks from handling cryptocurrencies, and other African countries have been cautious about legalising them.
Last year, the Central African Republic launched its own cryptocurrency token and legalised Bitcoin as a legal tender.
While prices of digital currencies have fluctuated, Mutati said there is increasing interest from investors looking to invest in Zambia.