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‘We Don’t Believe in Cryptocurrencies’

According to its governor, the Reserve Bank of Zimbabwe is opposed to cryptocurrencies but is open to developing its own digital currency.

The Central Bank does not believe in cryptos

John Mangudya (the governor of the Reserve Bank of Zimbabwe) stated that his institution is interested to create a central bank digital currency. He said that the central bank does not believe in cryptocurrency.

According to a Bloomberg report Mangudya said these comments during an interview with Trevor Ncube (a Zimbabwean veteran journalist). Mangudya spoke out in support of the central bank’s plans to follow the lead of other countries who have launched CBDCs, appearing to reaffirm the government’s position regarding digital currencies.

He explained:

We don’t believe that cryptocurrencies are a good idea as a central bank. We believe in central bank digital currencies, which are basically asking “How do we have an eZimbabwe dollars as opposed to cryptocurrency?”

Zimbabwean government official said in November that his administration was gathering views on CBDCs as well as cryptocurrencies. The comments of the official led speculation that Zimbabwe was planning to adopt cryptocurrency. These claims were later denied by the information minister of Zimbabwe.

RBZ will send a team to Nigeria

The report stated that rather than adopting cryptocurrencies, the RBZ plans to send a team from the United States to Nigeria, which is the first African country to establish a CBDC. The report states that the team will be learning from the experiences of the Central Bank of Nigeria (CBN), in relation to its launch of e-naira.

Mangudya stated that the RBZ has its own fintech department, which he claimed is hard at work. The governor stated that the central bank is working to ensure the RBZ does not fall behind other central banks who are also developing their CBDCs.