Several countries are experimenting with Central Bank Digital Currency (CBDCs) to accelerate financial inclusion initiatives. CBDCs are digital tokens issued by central banks that can be used for cross-border payments, wholesale transactions and more.
There are several advantages to introducing a CBDC in Zimbabwe. One is that it will bring financial inclusion to the masses. The other advantage is that the technology can increase the value of remittances to the country’s economy.
A central bank digital currency could affect Zimbabwe’s mobile money landscape. It could also alter the roles and responsibilities of the central bank and the private sector. In addition, it could alter the structure of the financial system.
Zimbabwe’s central bank is reportedly focusing on remittances that involve cryptocurrency. It is also considering developing its own central bank digital currency.
However, Zimbabwe is still in the early stages of adopting the digital currency. It is unclear if it will actually do so. In fact, it has created a regulatory sandbox for testing the use of digital currency.
Zimbabwe’s Finance Minister has recently made statements that suggest a shift in the government’s stance on the use of crypto currencies. He said that the government should “support” the market and “get involved in crypto”. He also advised the government to base the crypto currency on an asset and to intercept crypto currency tax.
However, it’s unclear whether Zimbabwe’s central bank will adopt the cryptocurrency. In fact, it may fail because of policy missteps or lack of discipline within the state coffers.
