RBZ director Josephat Mutepfa
Local financial services regulator the Reserve Bank of Zimbabwe (RBZ) has warned Zimbabweans of the risks associated with Bitcoin.
At the Mobile Money & Digital Payments Conference, Josephat Mutepfa, the RBZ’s Director of National Payments pointed out that while cryptocurrencies might be a global phenomenon and there might be a number of Bitcoin initiatives that now offer specific services in Zimbabwe, the central bank hasn’t devised regulation for cryptocurrency.
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As such, citizens who use it could be exposed to risks associated with untraceable transactions. Bitcoin, one of the most popular examples of blockchain technology provides holders with a virtual currency alternative and some startups have been offering services through Bitcoin.
Examples include Bitmari, a service that facilitates remittances to Zimbabwe in the form of Bitcoin.
Citing cases of collapsed Bitcoin exchanges, Mutepfa emphasised how the regulator’s stance was influenced by the need for a cautionary approach, especially with the risks associated with Bitcoin as unregulated alternative.