The top bank in Zimbabwe has warned local banks against cryptocurrency accounts. According to a circular that was released to the banks, they have a period of sixty days to cut any ties they have with cryptocurrency related accounts especially those belonging to cryptocurrency exchanges.
A section of the circular reads,
“As Monetary Authorities, the Reserve Bank is the custodian of public trust and has an obligation to safeguard the integrity of payment systems. Cryptocurrencies have strong linkages and interconnectedness with standard means of payments and trading applications and rely on much of the same institutional infrastructure that serves the overall financial system.”
The Reserve Bank of Zimbabwe warns local banks against cryptocurrency accounts stating 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; ensure that they do not provide banking services to facilitate any person or entity in dealing with or settling virtual currencies; and exit any existing relationships with virtual currency exchanges within sixty days of the date of this Circular and proceed to liquidate and restitute account balance.”
The registrar of banking institutions, N. Mataruka went ahead to clarify that from now on, Zimbabwean banks will not maintain/open cryptocurrency accounts, offer loans where digital tokens are used as security, among others.
Although the RBZ has been cautioning Zimbabwean citizens from dealing in cryptocurrency trading, it’s the first time that they have made it official. The move by RBZ follows the steps of the Reserve Bank of India and other countries like Algeria that seem not to welcome the uncertainties accompanying digital assets.
Do you think cryptocurrency investors in Zimbabwe will turn to online trading platforms as they wait for the exchanges’ next move? Will the exchanges move to court?
Let us know your thoughts in the comments section below.