RBZ researches on Bitcoins

ZIMBABWE and other countries in Southern Africa are currently carrying out a research to ascertain challenges and risks associated with bitcoins before accepting it as a legal currency, an official has said.

BY MTHANDAZO NYONI

Responding to questions from delegates attending the Insurance Institute of Zimbabwe annual conference in Victoria Falls this week, Reserve Bank of Zimbabwe director and registrar of banking institutions, Norman Mataruka, said countries in the region were undertaking a research on the use of bitcoins.

“In terms of the bitcoins, as far as we are concerned, it’s not actually legal. In Southern Africa, what we have done as regulators, we have said that we will not allow this in our markets,” Mataruka said.

“Research is currently on, being undertaken to ascertain the challenges and risks associated with these particular products and until we have actually established and come up with a legal and regulatory framework for them, it will not be allowed.”

Cryptocurrency or bitcoin is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds and operates independently of a central bank.

It was created in 2009 by a Japanese national, Satoshi Nakamoto.

The use of bitcoin currency, though illegal, has gained momentum in Zimbabwe, with a Zimbabwean cryptocurrency exchange Golix announcing in October that it targeted to process $1 million worth of transactions per month.

The central bank, however, has been wary of cryptocurrency due to the inability to trace the use of the currency to its owner, since it uses anonymous names and is independent of monetary authorities.

The world’s crypto market cap stands at $170 billion, with analysts predicting it to hit
$2 trillion in the coming years.

9 Comments

  1. wether you accept it or not we are already using it

  2. There is no research necessary. Let me put it in dummy terms in which YOU (RBZ) can understand and may be use to expidite your ‘research’:

    Bitcoin is a virtual online (crypto) currency. It is decentralized, which means YOU, the RBZ cannot say Jack. This means you cannot have a say on what people use it for or how much people can transfer to each other’s accounts. In layman terms, it means there won’t be need for a RBZ!

    Just like the US dollar, it will introduce itself (believe me, it has). You have to embrace it just like you told people embrace the bond notes and coins.

    Just like Chaoma said, people are already using it! I am. I bought a car from Japan for 0.710029109 bitcoins! No RTGS, No Bank, No Middle-man, No Charges and no explaination. That’s what bitcoin is taking away from you to say the least.

    1. By the way, BTC 0.710029109 converts to USD 5,531.17

    2. Pliz l would like to chat with u in private about bitcoin pliz contact me +263 733627835

  3. In a nutshell, Bitcoin takes away everything from the Central Bank. It is increasing in value by the day which far more better than than the Bond which is deteriorating by the day. When everyone is hooked on, and they will–RBZ will be irrelevant, just like in the US dollar era, before they seized control. But with Bitcoin, that will NEVER EVER happen. So there’s what you’re researching.

  4. Bitcoin spells the end of physical money era as we know it.

  5. Michael Rushizha

    Crypto currencies are a trend and there is no running away from the fact that Bitcoin is the leader of the pack. Just like adopting a currency from a foreign country, due diligence must be done before committing to their use. Crypto currencies are a big hit and the bubble may burst making people realize losses on their investment. Since nobody owns these currencies, there is no depositor protection schemes available in case of the worst.

  6. RBZ- NOTHING TO RESEARCH ABOUT…………….U SHLD BE KNOWING THESE THINGS

  7. 764872 369795A genuinely exciting examine, I could possibly not concur entirely, but you do make some genuinely legitimate points. 569924

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