Reserve Bank of Zimbabwe ‘Developed a Roadmap for Adoption of CBDC,’ Says Governor – Fintech Bitcoin News

The governor of the Zimbabwean central bank, John Mangudya, recently said his organization “has developed a roadmap for adoption of CBDC [central bank digital currency] in Zimbabwe.” Mangudya also revealed that two fintech startups had been admitted into the central bank’s fintech regulatory sandbox.

Stakeholders’ Views Wanted

Nearly six months after announcing the Reserve Bank of Zimbabwe (RBZ)’s intention to explore the feasibility of launching a central bank digital currency (CBDC), the bank’s governor John Mangudya recently revealed that the central bank now has a roadmap for the envisaged digital currency. He said the bank’s development of the roadmap is in line with the government’s decision on the CBDC which was made in November 2021.

Mangudya, however, suggested that in the second monetary policy statement for the year the RBZ was now keen to hear the opinions of all stakeholders. He stated:

It is important that all stakeholders are involved in the CBDC process. In this regard, the Bank created a paper for public consultation on CBDC. This paper will be available soon. This consultation paper aims to foster a wide and transparent dialogue among the public about potential CBDC benefits and hazards.

The RBZ states that the public can comment on the consultation papers once they have been published. Mangudya stated that this must take place within the first 90 days following the publication of the consultation papers.

Besides the consultation paper, the RBZ will also “carry-out consumer perception surveys on CBDC.” The findings from the two undertakings “will enable the Bank to engage in pilot programmes related to CBDC.”

Admissions to the Fintech Regulatory Sandbox

In the same statement, RBZ Governor revealed that Uhuru Innovative Solutions and Llyod Crowd Funding had been accepted into the fintech regulatory sandbox. Llyod Crowd Funding is the first to begin its operations in the sandbox, and will continue until 2023. Uhuru Innovative Solutions is likely to soon start regulatory testing.

According to Mangudya, the admission of the two startups and “the initiation of regulatory testing is a signal of the Bank’s commitment to promoting responsible innovation.”
At the same time, the results that are derived from the regulatory testing are expected to furnish the RBZ with “critical evidence in the formation of an appropriate regulatory framework for financial technology in the country.”

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Terence Zimwara

Terence Zimwara was a Zimbabwe writer, journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.

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