Zambia Takes Steps to Regulate Crypto as Adoption Grows Across Africa

Zambia’s finance minister, Felix Mutati, has announced that the government will undertake simulations of cryptocurrency use by the end of June to help create new crypto regulations.

These measures aim to balance innovation with consumer protection in the southern African nation. The Bank of Zambia and the Securities and Exchange Commission are working together to test the necessary technology to regulate crypto. This comes almost two months after Ethereum co-founder, Vitalik Buterin, visited the country to discuss Ethereum’s potential.

The government had previously warned its citizens against cryptocurrency trading due to a lack of legal protection. However, it recognized the potential of blockchain technology to transform and enhance efficiency in the financial industry.

Cardano, co-founded by another Ethereum co-founder, Charles Hoskinson, is also helping to drive African crypto adoption by enabling financial inclusion through digital identities.

Cardano builder, Input Output Global, has partnered with the Ethiopian government to introduce digital decentralized student identities, and co-funded Kenyan startup Pezesha to facilitate responsible lending to micro, small, and medium-sized businesses.

The Bitcoin Lightning Network is also being used to drive crypto adoption across the continent. CEO of payments company Block, Jack Dorsey, and his team recently spoke at the Africa Bitcoin Conference in Ghana, arguing that Bitcoin offers an alternative financial system to countries whose currencies face devaluation and complicated trade relations.

In many of these countries, citizens are unbanked, which allows Bitcoin to provide a financial lifeline to those in need without intermediaries.