Monday, January 30, 2023
  • In February 2018, the Zambia Securities and Exchange Commission issued a notice banning the use and association of cryptocurrencies and other digital products
  • The United Africa Blockchain Association is an organization-organization pioneered in Zambia to promote blockchain technology in Africa
  • According to Nkatya Labwe, acting assistant director of communication at the regulator, the results of the research will formulate the art of the policy consideration of introducing a central bank digital currency in Zambia.

Blockchain and cryptocurrency have firmly grabbed the hearts and minds of the majority in the tech world. Cryptocurrency in Africa has consistently been spotlighted in most news hubs, and for a good reason.

The Crypto adoption rate in Africa has surprised everyone and does not seem to slow down any time. Various African countries such as South Africa, Kenya, Nigeria, Egypt and Ghana have spearheaded this new move to blockchain technology in Africa. The buzz and frenzy over these countries have attracted the attention of potential investors.

Big-league crypto companies such as Ethereum and Solana have also taken notice. Despite this, various African countries have played a part in the overall development, but their song is still widely unsung. Zambia’s crypto ecosystem has taken a turn for the better. Here are the strides made in regard to cryptocurrency in Zambia.

The initial verdict of the Zambian government towards crypto

When exchange platforms introduced cryptocurrency in Africa, many were sceptical, especially since crypto trading was still roughly new. Crypto mining in other parts of the world was at an all-time high, and many new crypto enthusiasts were rushing to get into the ecosystem.

However, the financial problems faced in Africa barred this. The fiat currencies of various African countries had devalued; hence introducing a whole new economic system was not welcomed with open hands.

crypto & Zambia

Crypto in Zambia resurfaces as the government has second thoughts due to the crypto adoption rate in Africa.[Photo/theStar]

In February 2018, the Zambia Securities and Exchange Commission issued a notice banning the use and association of cryptocurrencies and other digital products.

They released a statement claiming that any individual or entity currently investing in cryptocurrency in Zambia should exercise restraint and caution. This warning was motivated by the hopes of educating and highlighting the dangers since it was, and is still, largely unregulated and hence not subject to the jurisdiction.

Also, Read African Metaverse: What it is and how Africa can benefit from it.

Although the government has given its stance on the matter, various Zambian crypto traders still take the risk and move forward, hoping to carve a path for themselves. Cryptocurrency in Africa significantly owes its progress to the few African governments embracing crypto. Still, most praises goes to the individuals who have taken the initiative to move with the tide.

Blockchain in Zambia

Despite Zambia’s extreme caution when dealing with crypto, it has taken a considerable stride in adopting blockchain technology. The United Africa Blockchain Association (UABA)  is an organization-organization pioneered in Zambia to promote blockchain technology in Africa.

UABA aims to accomplish this by creating meaningful partnerships and networks to deliver the support that cryptocurrency in Zambia desperately needs. Advocating for blockchain-based projects is also another core objective the non-profit organization-organization has. 

By helping the government and private institutions understand the intricate details of blockchain, they can identify the various use cases.

Blockchain can be applied in multiple sectors aside from Zambia’s crypto ecosystem. It can develop a decentralized financial system for the country and create revolutionary software and startups that can aid in boosting Zambia’s economy.

The Zambia government has given positive feedback on their efforts. Coincidentally it also seeks to shift to a new technological system to solve the country’s structural problems.

The main aim of its participation is to build and incorporate a self-sustaining community. This ensures that most of its citizens can make ends meet. By addressing the issue directly to the source of its country’s development, its citizens, attaining financial freedom and ec0onimouc prosperity is not a far-off illusion but rather a guaranteed result.

Blockchain technology is sure to improve its pace as the crypto adoption rate is still steadily rising within the country. Crypto in Zambia might have had a rocky start, but hope remains. Probase, A Zambian fintech and ICT company, has been interested in supporting the new transition to blockchain technology.

They signed a partnership with UABA to deliver life-changing blockchain-based solutions for the people of Zambia and Africa. In addition, they have offered to facilitate a youth-empowerment pilot project to create sustainable local communities through incentive-based crypto opportunities that enable communities to earn and spend cryptocurrencies for basic human needs.

Also, Read Blockchain security core components: Tools to test the security of a blockchain.

This is the first step in promoting blockchain and crypto in Zambia and improving its economic system. The group for the pilot are; Kalingalinga, Chainda, and Mutendere.

The positive shift towards cryptocurrency in Zambia

Despite its initial stance, Zambia’s government seem to have heard a change of heart. Zambia’s central bank has researched digital currency to identify its applicability within the country’s economy. It still has sceptical views of applying cryptocurrency as a legal tender but is open to the idea of CBDC.

According to Nkatya Labwe, acting assistant director of communication at the central bank, the results of the research will formulate the art of the policy consideration of introducing a central bank digital currency in Zambia. With the consistent advancements of cryptocurrency in Africa, those who remain in the previous technological era would suffer severely. A fact Africa knows all too well.

“Those who wish to partake in cryptocurrency should have a clear understanding of not only the benefits but also the risks involved with such payment and investment instruments”, an official statement made by Zambia’s central bank.

Conclusion

The recent shift from rejecting cryptocurrency to considering it is the first step to improving cryptocurrency adoption in Zambia. There are multiple fintech and crypto startups rooted in the country.

They continue to provide the necessary facilities for crypto trading and decentralized finance. Zambia’s crypto ecosystem is among the few real case examples. It shows that a shift in mentality is possible with consistency and patience.

Nigeria and South Africa are the pioneers of this great move. They both have embraced cryptocurrency in Africa through individual crypto traders and within their governments.

As Zambia slowly but surely joins in this crypto race, the crypto adoption rate acquires an extra alley in their race. This attempts to prove that Africa can be a powerhouse in this new technological age.

Also, Read Shiba Inu partners with FCFPay to venture into Netflix and Amazon payments.

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