El Salvador’s adoption of Bitcoin as a legal tender has spurred many debates and discussions on the potential financial ramifications. But it seems like Zimbabwe is not planning to follow in the footsteps of the central American country any time soon., despite the recent reports claiming otherwise.
CBDCs Yes, But No Bitcoin
While denying the previous report, the government has stated that the Zimbabwe dollar (ZW$) will remain the only official currency. 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.
The information minister, however, revealed that Zimbabwe is also experimenting with digitizing its sovereign 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,”
It doesn’t come off as a surprise Zimbabwe too is keener on CBDCs, considering regulators around the world are exploring the same avenue in response to the burgeoning cryptocurrency industry. As many countries ramp up their CBDCs experiments, Africa isn’t far behind. For instance, the Bank of Ghana had recently announced the pilot of “e-cedi.” Additionally, Nigeria’s eNaira also debuted in the last week of October.