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.