Reserve Bank of Zimbabwe [RBZ] bans cryptocurrency – gives a duration of 60 days for all the financial institutions

The Central Bank of Zimbabwe, the Reserve Bank of Zimbabwe has issued a circular which stated that ‘all financial institutions are hereby required to ensure that they do not use, trade, hold and/or transact in any way in virtual currencies’. The financial bodies are not allowed to provide any services to any person or entity dealing with cryptocurrency.

The Director of Reserve Bank of Zimbabwe [RBZ] and Registrar of Banking Institutions, Norman Mataruka issued the circular. The circular issued this time is in accordance with the previous one issued in November 2017 and the press release in December 2017, which speaks about the risks involved in virtual currencies.

According to Techzim, the circular states that one of the leading exchange platforms in the country, Golix took a step ahead and set up a cryptocurrency ATM machine through which transactions can be facilitated, and as the monetary authority, the RBZ has an obligation to safeguard the integrity of payment systems. RBZ believes that cryptocurrencies have strong linkages with the normal means of payment and mostly rely on the same institutional infrastructure that applies to the overall financial system.

The Reserve Bank of Zimbabwe has banned virtual currencies as the financial regulators across the globe have identified the dangers and risk it possess including the high volatility of the market which may lead to a huge amount of loss. RBZ also states that it can be used for fraud, criminal activities, and money laundering and also facilitate tax funds and activities that will violate the country’s law.

The Reserve Bank of Zimbabwe has given a duration of 60 days for all the financial institutions in the county to cease relationship with cryptocurrency exchanges and liquidate and restitute existing accounts.

Nick Nare, a pianist, and a composer said:

“Reserve Bank Of Zimbabwe: Crypto cannot be banned… You can only ban yourself out of crypto…”

Tine Basa, a councilor candidate for Goromonzi West Ward 7 said:

“Reserve Bank of Zimbabwe’s decision to ban cryptocurrency trading is very regrettable, old school and not in tandem with what is best for the country”

Tendy263, a Twitterati said:

“The Reserve Bank of Zimbabwe has not only banned crypto currency in Zimbabwe, they have banned the future from Zimbabwe. Zimbabwe is open for old business.”

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