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Central Bank Of Zimbabwe Restricts Financial Establishments From Dealing In Digital Currencies

May 15, 2018 Posted /  2918 Views

Central Bank Of Zimbabwe Restricts Financial Establishments From Dealing In Digital Currencies

According to a report by a local media outlet, the central bank of Zimbabwe restricted local financial organisations from managing digital currencies.

As per the report, the Reserve Bank of Zimbabwe's (RBZ) director of banking firms, Norman Mataruka issued a notice, demanding all of the financial establishments to stop giving services to digital currency exchanges within a period of 60 days and start dissolving existing digital currency based accounts.

Financial establishments have been demanded to make sure that they don't utilise, trade, hold or make transactions in any capacity in digital currencies, a move which pertains to both enterprises and people.

Clarifying the choice, Mataruka featured the correlation of digital currency and the traditional fiat financial framework, expressing that the RBZ has a commitment to protect the honour of payment frameworks, which the national bank isn't set up to give to digital currency.

John Mangudya, RBZ's governor cautioned that people who will trade in digital currency in the nation will do so at their own risk. He stated:

“Any person who buys sells, or otherwise transacts in cryptocurrencies, whether online or otherwise, does so at their own risk and will have no recourse to the Reserve Bank or to any regulatory authority in the country.”

Last year, RBZ considered the utilisation of digital currencies like Bitcoin as unlawful, until the point financial entities build up a regulatory structure for the digital currency.

Earlier in April, the Reserve Bank of India reported an identical ban, restricting all banks under its authority from dealing with digital currency based organisations.

Likewise, the move made by RBZ  comes after a cautionary advice against digital currencies from the Central Bank of Kenya (CBK), which recently released a notice on the threats related to digital currency trading, for example, fraudulent activities like hacking and loss of information.

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Tags: Central Bank Of Zimbabwe digital currencies Regulation Norman Mataruka

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