RBZ embraces blockchain tech

THE Reserve Bank of Zimbabwe (RBZ) has put into motion studies to investigate blockchain technology as it is a new developing global innovation.

BY TATIRA ZWINOIRA

RBZ governor John Mangudya told guests attending Alpha Media Holdings’ Banks and Banking breakfast meeting in Harare yesterday that the central bank wanted to embrace blockchain technology.

“I did not say cryptocurrencies because it is lower than blockchain. Block chain encompasses all the cryptocurrencies such as bitcoin and all the cryptocurrencies and we are saying we are putting in motion studies, ways and means of investigating that blockchain technology,” he said.

“In fact, it is true that for the rest of the world, if you go to countries like United States, China, United Kingdom, and South Africa it (blockchain) is the issue that is being discussed by the central banks, including the likes of the International Monetary Fund.

He said the central bank was working towards moving in the direction of blockchain so as not to be left out, adding that there was need for a cautious approach.

“What we are against as I have always said is to do things which are not regulated because we need to know where these bitcoins are being mined and do want to hunt them. So while we want to embrace things, we need to know where they are coming from. If you embrace mobile banking platforms we know that there is a trust account,” Mangudya said.

“If you are investing in virtual money, we want to know where it is being mined. In fact, cryptocurrencies are just like mobile money because you need a wallet where you deposit the cryptocurrency, but the issue is what is their source and how do they do it?”

Mining, in the context of blockchain technology, is defined as the “process of adding transactions to the large distributed public ledger of existing transactions, known as the block chain”.

Transactions are recorded into the blockchain with a consensus achieved by a proof-of-work system called mining. Upon reconnection, a node downloads and verifies new blocks from other nodes to complete its local copy of the blockchain.
The term is best known for its association with bitcoin, the world’s largest cryptocurrency.

Mangudya’s comments come as the central bank was being accused of not wanting to adopt the technology after banning the trade of cryptocurrencies.


In May, RBZ issued an order preventing banks and financial institutions from dealing with anything related to the virtual currencies despite having met with Bitfinance Private Limited a few days earlier to discuss its uses.

Bitfinance is the holding company of the country’s largest cryptocurrency exchange, Golix which has 50 000 clients.

RBZ also banned Golix from operating.

High Court judge Justice Alphas Chitakunye lifted the ban on the trading of cryptocurrencies.

But, while Golix could resume its operations, the ban on banks and financial institutions not to deal with anything blockchain-related still stood, forcing the company to look for outside markets.

10 Comments

  1. josphat mugadzaweta

    very confused panonetsa mangundya. gono’s replica

  2. The only thing these guys are good at is to ban what they dont understand instead of learning……rest of the world is appreciating Blockchain and Cryptocurrency. You cant talk of blockchain without cryptocurrency

    1. You can actually. Blockchain is not limited to cryptocurrency. A good case in point is the recent development in Rwanda where they placed the Rwandan Franc on blockchain not as a cryptocurrency. It can also be applied in fields like entertainment, identity management etc. It is the future

      1. But what is blockchain, really?

    2. The fact that it is not widely understood and accepted worldwide is good enough reason to ban it. His approach is correct. Understand it first for the purpose of regulating it in order to protect people. Once it is properly understood and can be regulated, then it can be allowed to operate.

  3. ukaono usinga gone kutiudza kuti chii chinonzi blockchain n cryptocurrency then uri mbavha unoda pfuma yausina kushandira.ukatadza kuudza mai vako vagogo kana mwana wako achiri kukura haaaaaaaaa chitsotsi

  4. Blockchain is a sophisticated way of extracting wealth from Africa and Third World countries. If you can not understand how Zimbabwe is being exploited through UN, World Bank and IMF structures you cannot understand what Mangudya is saying.

  5. They can’t accept it. Havadi vanhu kut vabudirire. Either banned or… am used to blockchain technology

  6. What kind of Central Bank Governor is he who gets that post and you don’t know this global phenomena in use everywhere? kind of Government is it that runs a modern state and you don’t know this global phenomena in use everywhere? We’re being led by Goatherders with fake educational credentials.

    All because the military in this country prefer to salute these ‘war heroes’ who never achieved anything of note other than blowing up trains and helicopters instead of building them. We’re led by backbenchers. The Security guard has the last decision on who gets the CEO post. Then you expect progress!?

    Africa is broken! To fix it might require that we fumigate it from these cockroaches.

  7. Block chain is easier than printing bearer cheques and mobile money’s fictitious credits to aid govt theft. Block chain is similar to the issuing of birth certificates. You must present the value you have created for verification and accreditation before it is credited to you, the same way you must present your child for verification by an independent authority before that child can be legally recognized as yours or a citizen of a certain country.

    Blockchain will kill corruption and rent-seeking and that will see all crooked politicians and thieves banished! Imagine that Zimbabwe took 38years to get rid of a despot that spent more time in the studio to perfect the art of reading speeches and killing citizens than all the time spent by mankind on earth. Instead of creating wealth or value. Yet he became the richest speech reader and also enriched his inner hang-oners! Blockchain will stop political hyenas from ever rising to power.

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