Zimbabwe’s information minister has publicly denied persistent rumors that the country is considering switching to cryptocurrency and bitcoin (BTC). Instead, Minister Monica Mutswangwa made it clear that the Zimbabwean government is obliged to pilot a digital central bank currency (CBDC).
Rumors of the adoption of cryptocurrency in Zimbabwe have emerged from several reports citing Charles Weequevet, the permanent secretary of the presidential office, that the government is in talks with private companies to help introduce cryptocurrency in the country.
Just one day after the reports were published, Mutswangwa held a cabinet briefing to reject allegations of ongoing adoption of cryptocurrency:
The government would like to assure the nation that it is not considering introducing another currency into the economy, as reported in some sections of the media. Our local currency is the Zimbabwean dollar (ZW $), not the cryptocurrency. ”
In addition, the minister explained that the Zimbabwean government is following in the footsteps of other countries, and is studying “digital currencies as opposed to cryptocurrencies, bitcoins or any kind of derivatives”.
It is important to note that the central bank’s digital currencies are digital tokens issued by the central bank to the government. If the digital tokens are launched in Zimbabwe, they will be linked to the Zimbabwean dollar and have a real-time local currency value.
Governments around the world are experimenting with central banks’ retail and wholesale digital currencies to find cheaper alternatives to cross-border payments, while expanding their ability to track transactions to prevent money laundering and other forms of fraud.
Related topics: Ghana will look at offline transactions for the next CBDC
Many African governments now see the digital currencies of central banks as a tool to accelerate financial inclusion initiatives. Ghana has recently joined a growing list of African countries that are currently experimenting with CBDC utility cases.
The central bank’s digital currency developed by the Bank of Ghana, e-cedi, will support offline transactions, reports Cointelegraph. According to Kwame Obong, head of financial technology and innovation at the bank, “the e-CD can be used offline with any smart card.”
The CBDC offline transaction function in Ghana aims to stimulate technology adoption in regions lacking reliable electricity and internet connection.