Minister of Zimbabwe expresses interest in CBDC amid rumors of Bitcoin adoption

The Minister of Information of Zimbabwe publicly refuted rumors that the country is considering adopting cryptocurrencies and Bitcoin (Bitcoin). Instead, Minister Monica Mutsvangwa clarified that the Zimbabwean government is keen to experiment with the Central Bank Digital Currency (CBDC).

The rumors about the adoption of cryptocurrency in Zimbabwe were triggered by numerous reports quoting Charles Wekwete, Permanent Secretary of the Office of the President, who said that the government is working with Private sector companies help introduce cryptocurrency domestic.

Just one day after the report was released, Mutsvangwa attended a cabinet briefing and dismissed the ongoing use of cryptocurrencies:

“The government wants to assure the country that it will not consider introducing another currency into the economy as some parts of the media have reported. Our local currency is the Zimbabwean dollar (ZW$), not cryptocurrency.”

In addition, the minister clarified that the Zimbabwean government is following in the footsteps of other countries by studying “CBDC as opposed to cryptocurrency, Bitcoin or any form of derivatives”.

It is worth noting that CBDC is a digital token issued by the government central bank. If launched in Zimbabwe, the digital token will be pegged to the Zimbabwe dollar and will have the currency value of the local currency in real time.

Governments all over the world are in Try retail and wholesale CBDC Look for cheaper alternatives to cross-border payments while improving their ability to track transactions to prevent money laundering and other fraudulent activities.

related: Ghana explores offline transactions for upcoming CBDC

Many governments in Africa now see CBDC as a tool to accelerate their financial inclusion initiatives. Recently, Ghana has joined a growing number of African countries that are currently experimenting with CBDC use cases.

As Cointelegraph reported, the CBDC developed by the Bank of Ghana, known as e-cedi, will support offline transactions. According to Kwame Oppong, the bank’s director of financial technology and innovation, “e-cedi will be able to be used in offline environments with some smart cards.”

The offline transaction function of Ghana’s CBDC aims to promote the adoption of the technology in areas lacking reliable electricity and Internet connectivity.