Zambian Central Bank warns of risks with Bitcoin & co.

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The Bank of Zambia (BoZ) announced on 12. October, a communiqué on the Status of crypto-currencies such as Bitcoin in Zambia. Accordingly, the crypto will not have currencies, while some of the characteristics of money, but are considered legal means of payment.

A recently published press release, the Central Bank allows it, take a look at the Zambian dealing with Bitcoin & co. to throw. The BoZ, the report stresses, among other things, their monopoly on the issuance of banknotes:

“[T]he Bank of Zambia Act limited the right to issue Bank notes […] exclusively on the BoZ. Crypto not legal tender in the Republic of Zambia, currencies.“

Although the trading with crypto-currencies is not prohibited, the BoZ points out, however explicit on the associated risks. It is said in the message:

Include “these risks of money laundering and the financing activities of terrorism and General consumer protection risks such as fraud and Hacking for the customers, in most cases, due to the unregulated nature of crypto-currency-related transactions no remedy is available.”

Blockchain instead of reason book

The Statement is in connection with a recently signed Memorandum of understanding between the Zambian Ministry of Land and natural resources, and the Medici country Governance. The Blockchain-an offshoot of the online trade Overstock.com plans for the introduction of a block chain-based management software to facilitate the registration of ownership of land in Zambia.

Like many other developing countries, Zambia’s difficulties, a functioning administration. Blockchain solutions are clear Use Cases. Projects such as the Medici country Governance could therefore be a pioneer for financial inclusion from developing countries. How exactly does a Blockchain-basic book work, you can read here.

Keep an eye on the African Bitcoin regulation

Bitcoin & co. delight meanwhile, in many countries in Africa are growing in popularity. The interest in Bitcoin is in countries with dysfunctional monetary regimes is particularly high, since the quantity of money is not diluted. So it is not surprising that the Zambian Central Bank expresses just now to Kryptos. Because the country is headed straight for a crisis. Inflation climbed to eight percent and the debt level is rising continuously.

Whether the government similarly drastic steps to grab like the neighboring country of Zimbabweis the Central Bank’s message first of all, not to remove it. In Zimbabwe, pushed the government in may any Bitcoin activities to the bolt.

The partnership with Medici country’s Governance, however, suggests a more liberal attitude of Zambia in terms of Blockchain technologies. Also, the last sentence of the communiqué is especially true confident:

“In line with the BoZ-Position that the regulation does not restrict, but innovations should allow, the BoZ continued to all developments.”

BTC-ECHO

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