May 2018 proved to be a crazy month in the cryptocurrency world. Cryptocurrencies went from ‘allowed’ to ‘banned’ and back to ‘allowed’ all in the space of 12 days.
Governor John Mangudya and his friends at the Reserve Bank of Zimbabwe (RBZ) overstepped their authority and issued a directive banning the trading of cryptocurrencies. They went further and ordered Golix, the biggest cryptocurrency exchange in Zimbabwe to close shop.
Golix responded by taking the RBZ to court and the RBZ could not show up to argue its case. VaMangudya and friends knew they would be embarrassed in court as they had no law to stand on. The High Court had no choice but to reverse the ban and allow Golix to resume trading.
It was a sweet victory but it was just one battle. The war has not been won yet because while the RBZ’s unlawful ban was suspended, there still isn’t any law governing cryptocurrencies. This means there still is the chance, God forbid, that legislators decide to follow the RBZ’s thinking and officially make cryptocurrencies illegal.
That would be a shame because we are seeing a lot of innovative solutions that utilise cryptocurrencies to solve various challenges we face in Zimbabwe. There are affordable remittance solutions, debt factoring solutions and many more out there that could be doomed if cryptos are banned. The loser will be the average Zimbabwean who will have to pay exorbitant remittance charges for example.
So how do we make sure the law-makers do the right thing? There are about 439 ways to skin a cat but today we present one.
Vic Falls Coin which has launched a petition to the Zimbabwean parliament to regulate cryptocurrencies rather than ban them as the RBZ would want. The call is for the law-makers to liaise with those in the blockchain and cryptocurrency business to understand the new technology before deciding on how to regulate.
You can go and sign the petition and make your voice be heard. Click on the link below to get in on the action.
The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe
Golix is a Cryptocurrencies exchange in Zimbabwe. Golix was founded in December 2014 and was initially called BitFinance while their exchange was called Bitcoin Fundi. The company was founded by Tawanda Kembo and Verengai Mabika. In May 2018, Golix was ordered to shut down operations... Read More About Golix
John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya