Zimbabwe’s Finance Minister Praises Switzerland’s Approach To Cryptocurrency

Mthuli Ncube, Zimbabwe’s new finance minister has called on his country to embrace cryptocurrencies, following the example set by Switzerland.

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Mthuli Ncube, Zimbabwe’s new finance minister has called on his country to embrace cryptocurrencies, following the example set by Switzerland.

Central bank should handle Bitcoin like Switzerland

Mthuli Ncube, who was appointed as the finance minister of Zimbabwe just two weeks ago, has urged Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ) to emulate the Swiss Central Bank.

IT Web Africa, a local news outlet reported September 17 that Mthuli Ncube made the call while referring to “investment and understanding” in Bitcoin published by the central bank of Switzerland.

Mthuli Ncube stated:

“Zimbabwe should be investing in understanding innovations and often central banks are too slow in investing in these technologies. But there are other countries which are moving faster. If you look at the Swiss central bank they are investing in and understanding Bitcoin.”

Cryptocurrency; the solution to economic turmoil

Zimbabwe has been facing economic difficulties for over two years, and its newly appointed minister of finance believes that cryptocurrencies could be a solution to the ongoing cash difficulties in the African nation.

The cash shortage in Zimbabwe grows worse every day, with most banks now imposing a limit on the amount depositors can withdraw in an attempt to stymie the hemorrhaging of cash.

This has killed individual trust in the country’s crumbling financial systems – citizens prefer to hold their wealth in cash rather than giving it to financial institutions for safe-keeping.

Mthuli Ncube promised to push the Reserve Bank of Zimbabwe into establishing a cryptocurrency division.

Ncube further stated that this division will be assigned with the responsibility of aiding apex banks in the country to develop a better understanding of virtual currencies.

Zimbabwe and cryptocurrencies

In a fashion similar to India and Iran, the Reserve Bank of Zimbabwe has in the past erred on the side of caution, choosing not to risk further destabilizing an already rocky economy.

In May, the RBZ announced that all domestic banking institutions in the country have been banned from offering services to cryptocurrency related businesses.

Also similar to India, the RBZ revealed in July that it was studying ways of applying blockchain technology to its internal processes to increase efficiency.

Take a cue from Switzerland

Zimbabwe’s new finance minister has urged his country and its central bank to take a cue from Switzerland, a country whose central bank has adopted a more progressive stance on cryptocurrencies.

Ncube pointed towards Switzerland where he stated that individuals can make payments for travel tickets online using Bitcoin and other cryptocurrencies.

Furthermore, he argues that countries with a progressive stance towards cryptocurrencies appreciate the value in them and where it’s headed. Encouraging Zimbabwe, he stated:

“We have innovative youngsters so the idea shouldn’t be to stop it and say don’t do this, but rather the regulators should invest in catching up with them and find ways to understand it, then you regulate it because you now understand it.”

Ncube insists that if the African nation turns a blind eye towards Bitcoin and other cryptocurrencies, it would be forfeiting the immense benefits which come along with them, both now, and in the future.

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