The Central Bank Of Zambia Says That Bitcoin is Not a Legal Tender
On one hand the use cases of cryptocurrency is on a steady rise on the other, most of the countries in the world still maintain an aversion and continue to slap stricter their regulations against cryptocurrency. The Bank of Zambia (BoZ), the regulator for creating and implementing monetary policies for the country, declared their stand on cryptocurrency. In contrast to the steady increase in public interest, Zambia’s central bank pronounced that bitcoin aren’t legal tender in the country.
The regulator of the 105th largest economy, elaborates that they have had been receiving a lot of inquiries related to Bitcoin and its legal status in Zambia. In order to “safeguard the interests of members of the public and to maintain the integrity of the financial system”, the bank has taken its official stance on currencies, as reported by a local news report.
To support their stance BoZ cited references from their financial constitutions, namely Section 30, that would not allow Bitcoin and similar digital assets to achieve a legal tender status. Furthermore they noted that under the current legal frame, they do not have the power to constitutionally disfigure or ban the local crypto market. The excerpts from the report states:
“Firstly, Section 30 of the Bank of Zambia Act vests the right to issue notes and coins exclusively in the BoZ. To date, BoZ has not issued any form of cryptocurrency. Cryptocurrencies are not legal tender in the Republic of Zambia; Secondly, BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner’s risk.”
Following the footsteps of other countries, who have chosen to avert digital currencies the BOZ also issued a warning for investors to proceed cautiously and to study the risks associated with the use of cryptocurrencies thoroughly. In the list of ills, money laundering, consumer protection, and terrorism financing were added and the statement warns that the government would not be able to help you in case of any such online crimes.
Up till now the constitution of Zambia does not define Bitcoin, however thing might change soon as the lawmakers are trying to involve regulation under a modified provision. The central bank notes that in the coming future they hope to evolve a regulation system that “should not constrain but enable innovation.”
The crypto community of the country is still not observe a substantial trading activity to the global crypto volume. Since the country does not have an active local exchange the traders either depend on foreign crypto exchanges or peer-to-peer desks for their transactions. With only 11.6 percent of people privy to internet connection in the country (according to a World Bank report), the low trading volume is quite acceptable.
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