Zimbabwe Seeks Public Input on Cryptocurrency Regulation

Key Takeaways

1. Public Input Needed: Zimbabwe seeks feedback from crypto providers to develop regulations. Comments due by June 26.
2. ZiG Currency Launched: Zimbabwe introduced a gold-backed currency called ZiG to stabilize its economy.
3. Debt Reorganization: Zimbabwe is reorganizing $19.2 billion in debt, including $13 billion to international investors.

YEREVAN (CoinChapter.com) — Zimbabwe is inviting public input on cryptocurrency operations to develop regulatory policies. The government announced this in the state-run Herald newspaper on Wednesday.

“In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape.” 

Seeking Crypto Feedback by June 26

Notably, the Zimbabwean government is calling on all cryptocurrency service providers, whether they operate within the country or offer services to its citizens, to provide comments. This is part of a broader effort to understand and assess the cryptocurrency landscape in the African nation.

A committee has been established to consult with operators in the virtual-asset ecosystem. The government is seeking comments by June 26, ensuring that stakeholders have enough time to contribute their insights.

Zimbabwe Launches Gold-Backed ZiG Currency to Fight Inflation

Zimbabwe has faced financial chaos and high inflation for years. Last year, the country introduced a gold-backed virtual token to address these issues. In April, a new currency known as ZiG, short for Zimbabwe Gold was launched. Moreover, this is the nation’s sixth attempt in 15 years to establish a stable local currency.

The ZiG replaced the country’s dollar, which had crashed multiple times since its reintroduction in 2019. The statistics agency started using ZiG as a base for computing inflation in May. Consumer prices fell 2.4% from April to May. Inflation was 57.5% in April, based on a blended measure of the now-abandoned Zimbabwean dollar and the US currency.

Notably, Zimbabwe has been locked out of international capital markets since 1999 due to defaulting on its debts. Moreover, the country is working to reorganize approximately $19.2 billion owed to creditors, including $13 billion to international investors. The debt crisis has significantly impacted Zimbabwe’s financial stability and economic growth.

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