Zimbabwe’s government is apparently contemplating making Bitcoin, a decentralized cryptocurrency, a legal payment option alongside the country’s native currency, the Zimbabwean Dollar. The head of e-Government technology in South Africa, Charles Wekwete, has stated that talks with private sector companies are ongoing to legalize Bitcoin payments. He did not specify when the Zimbabwean government will make a final judgment on the matter.
According to Wekwete, the government is concerned that bitcoin might be used by well-known individuals to aid criminal operations such as money laundering and funding other illicit activities with little or no risk of being tracked.
“Governments are still trying to figure out what’s going on and how to deal with it effectively” (cryptocurrency). “In our case, we were initially trying to understand their implications because they are a fundamental departure from previously known financial instruments, and there are a lot of fears about cross-border fund movement, money laundering, externalisation of funds, and illicit flow of funds to fund illicit issues,” the top official was quoted as saying in a report by Zimbabwean news portal Bulawayo24.
Individuals and businesses in the private sector have been encouraged to submit suggestions to help finalize Bitcoin acceptance in Zimbabwe.
“Cryptocurrency cannot be disregarded,” Wekwete said after the government adopted the digital economy framework earlier this year.
El Salvador became the first country in the world to recognize Bitcoin as legal cash earlier this year.
The possibility that Zimbabwe may follow El Salvador in adopting cryptocurrency has sparked a firestorm of debate on Twitter.
A parliamentarian in Tonga, the last Polynesian kingdom in the South Pacific, pushed for Bitcoin adoption in October, claiming that remittance-dependent countries could save boatloads of money that is currently deducted as a service fee by banks from the money their overseas working citizens send back home.
The crypto culture has seen significant development in recent years all over the world. While governments in numerous countries, like the United States, India, and Pakistan, are seeking to regulate the crypto sector, many worldwide firms are recognising the culture.
According to industry research tracker CoinGecko, the whole value of the crypto market is currently $3.007 trillion (approximately Rs. 2,22,79,296 crore).