Cryptocurrency

Zambia – BoZ Warns That Crypto Coins Are Not Legal Tender

The Bank of Zambia (BoZ) has issued an official statement reminding its citizens that crypto coins “are not legal tender in the Republic of Zambia”. In addition, it advises citizens to “be aware of the risks associated with the use of crypto coins.

The communiqué lists the most common fears associated with crypto activities such as money laundering and terrorist financing.

However, as contradictory as it may seem, the BoZ said it remains committed to “not limit, but allow innovation.

It highlights the fact that the BoZ will not supervise the use of cryptocurrencies; the purchase and use of these assets are at the citizens’ own risk.

Exactly what prompted the BoZ to issue its statements is unknown. The bank only cited a “growing public interest in cryptocurrencies, as evidenced by the growing number of inquiries BoZ has been receiving” as a reason.

On the other hand, BoZ’s announcement comes before what many believe will be a general crisis in Zambia’s economy. Because after the interest rate hike by the US Federal Reserve it will be very difficult for the African country to pay its commitments. This coupled with the rampant and voracious corruption that affects it, as do most underdeveloped countries.

Even the IMF itself has recently considered that its loans for the country’s development may have done more harm than good.

It is undoubtedly the breeding ground for the use of cryptocurrencies within Zambia. It would not be the first time that the inhabitants of countries under a terrible economic recession and/or totalitarian governments defend their savings through crypto activities.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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