Zimbabwe minister signals CBDC interest amid Bitcoin adoption rumors

The minister of information in Zimbabwe has dismissed rumors that the country is considering adopting cryptocurrencies (BTC) and Bitcoin (CBDC). Minister Monica Mutsvangwa stated that Zimbabwes government is open to the idea of a central bank digital currency (CBDC).

According to numerous reports, Charles Wekwete (permanent secretary of the president), stated that Zimbabwe was talking with private sector companies about introducing cryptocurrency into the country.

Mutsvangwa, just one day after the reports were published, attended a cabinet briefing in order to discredit the ongoing claims of crypto adoption.

“Government would like the nation to know that it does not plan on introducing another currency into the economy, as some media sections reported. Our local currency is ZW$ (Zimbabwe Dollar), and not cryptocurrency.

The minister also clarified that Zimbabwes government is following in the footsteps of other countries and studying “CBDC” instead of cryptocurrencies, bitcoins, or any derivatives.

CBDCs, which are digital tokens issued and managed by the central bank of a government, can be found here. The digital tokens, if launched in Zimbabwe will be tied with the Zimbabwe Dollar and will have the same monetary value as the local currency in real time.

The worlds governments are exploring the use of wholesale and retail CBDCs for cross-border payments. They also want to reduce fraud and increase their ability to track transactions.

Related:Ghana will explore offline transactions in the future CBDC

Many governments in Africa are looking at CBDCs as a way to accelerate their financial inclusion efforts. Recently, Ghana joined the growing number of African countries who are trying CBDC use cases.

Cointelegraph reported that the Bank of Ghanas CBDC, the e–cedi, will allow for offline transactions. Kwame Oppong (head of fintech innovation and banking), stated that the e-cedi could be used offline with smart cards.

Ghanas CBDCs offline transaction feature aims to encourage the adoption of technology in areas that do not have reliable internet access or electricity.