This is a white paper on whether Bitcoin can succed in Africa specifically looking at Zimbabwe which currently has a multi currency regime and how the law of that country would apply
White Paper: Key Compliance Challenges in Cross-Border PaymentsPayoneer
Businesses initiating cross-border payments are subject to multiple payment regulations in both the originating country and the country in which they land.
The costs of non-compliance can be severe, including failed payments, fines, reputational damage and in severe cases, imprisonment.
In this white paper you'll learn:
About cross-border regulations and why should you care
What local regulations and bodies you should know about
How to adopt a risk-based approach in order to be compliant
What to include in your Risk & Compliance Program checklist
White Paper: Key Compliance Challenges in Cross-Border PaymentsPayoneer
Businesses initiating cross-border payments are subject to multiple payment regulations in both the originating country and the country in which they land.
The costs of non-compliance can be severe, including failed payments, fines, reputational damage and in severe cases, imprisonment.
In this white paper you'll learn:
About cross-border regulations and why should you care
What local regulations and bodies you should know about
How to adopt a risk-based approach in order to be compliant
What to include in your Risk & Compliance Program checklist
Analysis of Indian demonetisation- All you need to knowShashwat Tulsian
The Central Government has declared that the bank notes of existing series of denomination of the value of five hundred rupees and one thousand rupees shall cease to be legal tender on and from the 9th November, 2016.
"Modern Money Mechanics" was a booklet published and distributed by the Federal Reserve Bank of Chicago, originally written by Dorothy M. Nichols in May 1961. Described as a "workbook on bank reserves and deposit expansion", the text offers a detailed description of the basic process of money creation in a fractional reserve banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System.
The booklet is now out of print.
On 8 November 2016, the Government of India announced the demonetization of all ₹500 (US$7.80) and ₹1,000 (US$16) banknotes of the Mahatma Gandhi Series.
African Digital Currency Association Bitcoin meet up 1 12-2014Jon Son
The adoption of Bitcoin the worlds first digital currency is expanding across Africa rapidly. Industries such as Money Remmitance and the App economy will be affected greatly by innovations in this space. Learn more about Bitcoin Technology and how it will affect your life, business and, technology in the near future.
Slides by the ADCA for the Bitcoin Kenya Meet Up held on the 16th Sept at the iHUb Nairobi
For notes accompanying these slides, please email a request to info@africandca.org
Analysis of Indian demonetisation- All you need to knowShashwat Tulsian
The Central Government has declared that the bank notes of existing series of denomination of the value of five hundred rupees and one thousand rupees shall cease to be legal tender on and from the 9th November, 2016.
"Modern Money Mechanics" was a booklet published and distributed by the Federal Reserve Bank of Chicago, originally written by Dorothy M. Nichols in May 1961. Described as a "workbook on bank reserves and deposit expansion", the text offers a detailed description of the basic process of money creation in a fractional reserve banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System.
The booklet is now out of print.
On 8 November 2016, the Government of India announced the demonetization of all ₹500 (US$7.80) and ₹1,000 (US$16) banknotes of the Mahatma Gandhi Series.
African Digital Currency Association Bitcoin meet up 1 12-2014Jon Son
The adoption of Bitcoin the worlds first digital currency is expanding across Africa rapidly. Industries such as Money Remmitance and the App economy will be affected greatly by innovations in this space. Learn more about Bitcoin Technology and how it will affect your life, business and, technology in the near future.
Slides by the ADCA for the Bitcoin Kenya Meet Up held on the 16th Sept at the iHUb Nairobi
For notes accompanying these slides, please email a request to info@africandca.org
seeing around corners | technology trends in africa | 2016justin spratt
Global Technology Trends that will influence Africa in the Next Decade; Media, Bitcoin, MicroServices, Machine Learning (AI), Augmented Reality & Virtual Reality.
Tanzania. Battling for Attention in East Africa? Future Watch Report, May 2015Team Finland Future Watch
The most significant transformative factor on the economy of Tanzania is the large natural gas reserves that were recently discovered. Dar es Salaam is one of the fastest growing cities on earth yet infrastructure to support this growth is poor.
Edutech 2016 Tools to support Diverse LearnersKim Martin
Edutech
Breakout Session Tuesday 31 May 2016
1:00-2:15: Workshop | Special Education/Assistive Technology: Tools & tricks for inclusive technology use to support independent & scaffolded learning
Mama Mboga Report: Bitcoin for Micro Transactions in East AfricaAfrican DCA
There's an opportunity for Bitcoin in East Africa - low value transactions.
Mobile Money fallen short at enabling micro transaction and micro transfers. Mobile Money inhibits low value P2P exchange.
This report compiles data from 6 countries in East Africa to prove this fact.
This report presents a use case for Bitcoin.
ASIADIGITALCOIN | ASIA DIGITAL COIN (ADCN) COMPENSATION PLAN Shaikh Amin
Compensation plan of Asiadigitalcoin (ADCN)
Connect with me for starting with ADCN
Shaikh Noorul Amin
Link:http://bit.ly/ADCNregister
Skype:workwithamin
Whataspp:00917350090888
email:workwithamin@gmail.com
A basic introduction to the bitcoin's architecture and the blockchain that supports the bitcoin network. Intended audience = college students who had no idea about bitcoin, blockchain or the cryptography involved. This is a good place to start with bitcoin if you are just curious about what all the buzz is about.
Whether you are planning for establishing a white label crypto exchange software development company or a centralized trading development in the Middle East, you must know about compliance and taxation outlook in this region. This article will give you a better understanding of legal regulation and taxation in the Middle East.
This presentation covers the global high-level regulatory and compliance challenges facing Bitcoin and crypto-currencies today and in the foreseeable future
Introduction to Bitcoin and Dollarpesa AdoptionJohn doe
1. How do government regulations impact the adoption of cryptocurrencies
like Bitcoin and Dollarpesa?
Government regulations can have both positive and negative effects on the adoption of
cryptocurrencies. While regulations can provide a sense of security and legitimacy to
investors and users, excessive regulations or strict limitations can hinder adoption and
innovation. Finding a balance between regulation and fostering growth is crucial for
widespread adoption.
11
2. Are there countries that have implemented favorable regulations for Bitcoin
and Dollarpesa adoption?
Yes, some countries have adopted favorable regulations to encourage the adoption of
cryptocurrencies. These regulations often provide a supportive environment for
businesses and individuals to engage with digital currencies, promoting innovation and
growth. Case studies of such countries can provide valuable insights into the benefits of
favorable regulations.
3. What are the potential economic and social impacts of government
regulations on Bitcoin and Dollarpesa adoption?
The economic impact of government regulations on adoption can vary. Favorable
regulations can attract investment, drive economic growth, and create new job
opportunities. Conversely, stringent regulations can limit market participation and stifle
innovation. Socially, regulations can influence public perception and trust in digital
currencies, impacting their acceptance and adoption by the general population.
4. What recommendations can be made to governments regarding regulations
on Bitcoin and Dollarpesa adoption?
12
Recommendations for government regulations on adoption include creating a clear and
transparent regulatory framework, fostering collaboration between government and
industry stakeholders, promoting education and awareness about digital currencies, and
adopting a proportionate approach that balances regulation and innovation. It is
essential for governments to continuously evaluate and adapt their regulations to keep
pace with the evolving landscape of cryptocurrencies.
Japanese new legislation regarding BitLincense explained. Good for bitcoin exchange service providors, legal advisors and consultants who want to know about Japanese new legislation
The first solid explanatory slides about Japan's new BitLicense legislation. Good for foreign VC exchange service providers, legal counsel, consultant, advisors and venture capitalists who are interested in Japanese regulatory environment in virtual currency business.
Abu Dhabi - 5th Annual Financial Crimes ConferenceJuan Llanos
This pioneering seminar attempted to elucidate the rise, purpose, operational intricacies, societal benefits and multiple risks of Bitcoin and the emerging breed of alternative digital currencies. For the first time in history, Bitcoin allows individual consumers to make payments and move funds securely, completely outside of the traditional financial system. In recent months, there has been a lot of hype about the risk of virtual currencies, but not much explanation about how they work and what the real risks and also societal benefits are. In this session, regulators, executives and risk managers had the opportunity to learn how Bitcoin and other digital currencies work, what the true risks are and what can be done to both manage the risks and exploit the opportunities.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Cryptocurrency- Can Bitcoin Make It in Africa- An Analysis of the Legal Framework in Zimbabwe
1. CRYPTOCURRENCY-CAN BITCOIN MAKE IT IN AFRICA- AN
ANALYSIS OF THE LEGAL FRAMEWORKIN ZIMBABWE
By Simbarashe Machiridza
Abstract
The emergence of cryptocurrency innovation on the financial scene has a
generated a lot of debate among regulators and conventional money market
players. With growth in use of such technologies as the blockchain, bitcoin has
become a regular practice in cities of the developed countries. Focus has
however, shifted to control and regulation of the digital currencies. While
bitcoin is extensively gaining momentum in the developed countries, low
income countries have lagged behind in the adopting this technology simply
because they don'tunderstand it, lack the interest or have not explored the
opportunities it can bring to the financial services industry. The current state of
bitcoin adoption in Africa shows only two countries, South Africa and Kenya
having made some inroads in understanding the technology. In these countries,
the regulators have allowed, in principle few players to pre-test the market at the
same time understudying the dynamics involved in implementing such
technologies. In the bitcoin world, Zimbabwe is often referenced as a unique
country with the fundamental structure to launch a relatively successfuldigital
currency. This paper reviews the potential for adopting bitcoin in Zimbabwe
with special emphasis on the legal regime and role of the State in regulating the
technology.
About the Author
Simbarashe Machiridza is a registered lawyer in Zimbabwe who has eight years
of experience in private practice and has also worked in corporateenvironment
and is now a full time consultant with Trajectory Consultancy, a consultancy
organisation that specialises in financial and commercial law in Zimbabwe.
INTRODUCTION
In February 2009 the Zimbabwean Government effectively abandoned its own
currency, the Zimbabwean Dollar and in the process liberalised its foreign
exchange regime to allow economic actors to use multiple currencies when
charging for their goods and services (commonly referred to as dollarization).
This move allowed the introduction of a multi-currency regime1.
On 11 June 2015 the Reserve Bank of Zimbabwe (RBZ) announced that it was
embarking on a demonetisation programme for the Zimbabwean dollar, a
1 See the Monetary Policy Statement Dated
2. process according to it had been due once the Country had adopted the multi-
currency regime.2 The said regime allows all persons to use currency of their
choice in day to day trade and in this regard “Zimbabwe seems to offer a perfect
microcosm or case study of what the Eurozone could have done. On this, it is
noteworthy that Zimbabwe is peerless in the drive towards the implementation
of multi-currency systems in an orderly and systematic manner”3. Currently the
list of allowed currencies under this regime has nine (9) international currencies
namely the South African Rand, the US dollar, the British Pound, the Euro, the
Chinese Yuan, the Australian Dollar, the Tswana Pula, the Japanese Yen and
the Indian Rupee4. The Government of Zimbabwe has repeatedly stated that this
currency regime will remain part of its financial policy for a while and that even
when times comes for the introduction of its local currency the said currency
would operate concurrently with the aforementioned international currencies5.
By introducing the multi-currency regime the Zimbabwe Government had no
option but to relax its exchange controlregulations6. The relaxation has been a
sustained policy decision7 and as recently as June 2015 the Reserve Bank
stated8 that it was re-orienting the Exchange Control9 by re introducing foreign
exchange bureau de changes that had been abolished10 as well as allowing
outward monetary transfer to people outside Zimbabwe11. One of the most
direct consequences of the introduction of the multi-currency regime has been
the limiting effect it has on the role and function of the RBZ in particular
reference to the its dealing with foreign currency and issuance of currency as it
2 See Press Statement issued on 11 June 2015 by RBZ Governor Mangudya –“Zimbabwe adopted the multiple
currency system or dollarization in 2009 and itis therefore necessary to demonetize the$ unit to replaceit
with the multiplecurrency system as was approved in the Finance(No 2) Act of 2009.The decommissioningof
the Z$ has therefore been pending and long outstandingsince2009
3 Zimdollar versus themulti-currency system –www.zimbabwesituation .com accessed on 18 June 2015
4 Directiverk 26/09 as read with January 2014 RBZ Monetary Policy Statement
5 On 6 August 2013 the then Governor of the RBZ issued a press statement in which he stated that “The multi -
currency regime will be with Us for the foreseeable future and in any case,when the time comes the local
currency will circulatealongsideother existingcurrencies with people exercisingtheir choiceof currency to
hold
6 See Exchange Control DirectiveRK39 dated 23 February 2009 as well as the Monetary Policy Statement
Issued on 25 August 2014
7 At page 313 of Short Term Economic Recovery Programme(STERP) Government stated that ‘In order to
remove restrictions on businesstransactionsGovernment deregulated restrictiveexchange controls and
delegated export administration and payment authority to banks
8 See The Herald dated 9 June 2015- “RBZ re-orients Exchange Control
9 “Morris Mpofu the Exchange Control Director at the RBZ stated that “We arere-orienting our systems so that
they facilitatebusiness.Our aimis to improve the ease of doingbusiness…and peoplegenerally don’t look at
control as an enabler to business….
10 They had been abolished on 30 November 2002 after the announcement by the FinanceMinister in his
budgetary statement – Joseph Noko at page 3 of his paper titled “Dollarization :The Caseof Zimbabwe” Cato
Journal Vol 31, No 2 (Spring /Summer)
11 S11 (1)of the Exchange Control Regulations SI 109/96 previously outlawed transfer of funds outside
Zimbabwe without the Exchange Control approval
3. is no longer being the author of a currency12 and in that regard “Zimbabwe is an
example of a sovereign country that no central bank that prints money”13. The
significance of this will be shown below.
Despite the introduction of the multi-currency the Zimbabwean economy has
been affected by liquidity crunch14 as well as low personal deposits into banks
as the citizens still do have full trust of the banks15. This has seen the emergence
and blooming success ofmobile cash transfers such as Eco cash and nett cash16
which however are not as cheap17. The RBZ has also called upon banks to
promote the use of non-cash based transactions such as point of sale18. Theses
variables have one unique feature- they are alternative forms of payment and
banking.
Currently Zimbabwe is the only nation operating a multi-currency regime in its
form and as such it offers an interesting position on having alternative forms of
payment. This should be taken in the context that when one looks at the
Eurozone the system is markedly different and the challenges the Eurozone is
facing are as a result of the fact that the Eurozone pins all its currency on the
Euro while in Zimbabwe the system is more open.19
Zimbabwe on paper offers an ideal platform for the introduction of
cryptocurrency as its currency set up is open. This point is made more pertinent
by the fact Zimbabwe does not have its own currency and therefore the fears
expressed by other Central Banks such as the Central Bank of China which
issued the Notice on Precautions Against the Risk of Bitcoins in which they
stated that bitcoin was a “virtual commodity” and by its nature is not a currency
and should not be circulated and used as a currency20. Or as the Russians have
stated that the use of cryptocurrency in their country is illegal in that it seeks to
12 S41 of the Reserve Bank Act (Chapter 22:10) ‘the Bank shall havethe solerightto make or causeto be made
and to issuebank notes in Zimbabwe
13 See 4 above
14 See page 6 of the January 2014 Monetary Policy Statement wherein the Acting Governor of the RBZ stated
that Zimbabwe has “a severe and persistentliquidity crunch which has made itvery difficultfor local
productive sectors to access sufficientcreditto oil the wheels of our economy.”
15 See page 9 of Mappingthe Retail Payment Services Landscapeof Zimbabwe by FinMark TrustAugust 2012
where it is stated that “ … a potentially significantpopulation chooses notto operate in the formal financial
systems as they no longer trust formal financial institutions to protect their funds
16 See page 22 of FinMark report supra
17 For instanceto receive send $50 to a subscriber onehas to deposit $53 in their Eco cash account.
18 See point 112-113 of Monetary Policy Statement of January 2014
19 See Zimdollar versus Multicurrency supra
20 Regulation of Bitcoin in Selected Jurisdictions- Library of Congress. www.ioc.gov/help/bitcoin- accessed on
9/6/15
4. introduce a new currency outside the purviews of their laws21. These do not
apply to Zimbabwe as it does not produceits own currency.
Key Question
Can cryptocurrencybe recognised as a currency in Zimbabwe or as alternative
payment system?
Historical Background
For this question to be answered a brief understanding of the history of
Zimbabwe is necessary. Zimbabwe was a British colony having been fully
colonised around 1880. Zimbabwe attained its independence in 198022. The
constitution adopted at independence commonly known as the Lancaster House
constitution23 provided that the law applicable in Zimbabwe would be the law
applicable at the Cape of Good Hope on 10 June 189124. The said law
incorporated British law as well as Roman Dutch law.
The Commercial aspectof the law in suchareas as banking, insurance and
mercantile law draws from British common law and legislation and as such
guidance is obtained from the British legal system.
Due to the challenges it faced in the post2000 period after the collapse of its
stockmarket and a run of investors and continued drain on foreign currency
reserves with minimal investment25 the regulations dealing with foreign
currency tightened over the years for example bureau de changes were
abolished26 limiting licences to deal in foreign currency to banks27 and the value
of the dollar deteriorated at a rate that could not be controlled28.
So having endured a period of stringent exchange controlregulations as
well as having a back ground of law tainted by British law can this nation
continue its liberalised stand point and acceptthe new form of virtual
currency?
It should be clear from the onset that Zimbabwe is a third world nation and as
such its rate of technological development is far from ideal but it boasts of
21 See 20 above
22 www.wikipedia.org/wiki/history
23 This Constitution was to be abandoned in June 2013 when a new constitution (Constitution of Zimbabwe
Amendment (No.20) Act 2013) was adopted after a referendum in Zimbabwe.
24 S89 of the old Constitution (SI 1979/1600 of the United Kingdom)
25 Accordingto Joseph Noko supra at page 4 Foreign DirectInvestment fell from $400 million in 1998 to $30
million by 2007
26 See 11 above
27 Joseph Noko supra at page 3
28 By November 2008 monthly inflation was pegged at 79, 600,000,000.00%see Joseph Noko supra at page 9
5. having one the highest adult literacy rates29 and in the past five years access to
the internet has increased due to the expansion of the mobile network system.
According to Wikipedia as of January 2014 approximately 40% of Zimbabwe’s
population are internet users which is a significant rise from the 0.4% in 2000
and 15.7% in 2011. Official figures from Postaland Telecommunications
Regulatory Authority of Zimbabwe (POTRAZ)reflect that the total number of
mobile subscribers stand at about 11 798 65230 and this is taken from a
population of 13.6 million is quite telling.
The Zimbabwean Legal Framework
The Zimbabwean banking sector is governed by multiple statutes extending
from the Reserve Bank of Zimbabwe Act (Chapter 22:15) to the Banking Act
(Chapter 24:20), the Exchange Control Act (Chapter 22:05) as well as the
Exchange Control Regulations SI 109/06. The payment system is governed by
the National Payment Systems Act (Chapter 24:23) while criminal conductis to
an extent outlined by the Promotion of Bank Use and Suppression of Money
Laundering Act (Chapter 24:24). It is through this framework that the financial
sectoris regulated in Zimbabwe. The judgements of the superior courts of the
land in particular the High, Supreme and Constitutional Court31 offer guidance
in the interpretation of common law principles as well as statutory provisions in
banking and commercial law.
The key issue or question is whether the current legal framework poses a
hindrance to the establishment of bitcoin in Zimbabwe. Cryptocurrencies have
been defined as electricity converted into lines of codewith monetary value i.e
digital currency such as Bitcoin. “Generally speaking Bitcoin is two things
1. a payment network- Bitcoin
2. the current unit used on that network-bitcoins”32
Zimbabwe has no clear regulation of e-commerce or electronic banking as aptly
stated by Alfred Bimha in his project on the Impact of Electronic banking33,
“The Reserve Bank of Zimbabwe has not significantly taken care of electronic
banking and put stringent operating rules of it in Zimbabwe. This is seen by the
nonexistence of legislature to cater for electronic banking and even electronic
29 Accordingto the FinMark Trustpaper supra at page 8 the literacy rate in Zimbabwe is exceptionally high at
90%
30 http://www.techzim.co.zw/2015/04-Zim-telecoms-stats-from potraz-show-decline-in-mobile-revenue-
internet-penetration/
31 Set up in terms of s170,168 and 166 of the new constitution
32 What is bitcoin?- Welcometo Cryptocurrency by Erik Voorhees
33 Alfred Bimha The Impactof Electronic Bankingon the Supervisory and Regulatory Systems in Zimbabwe
6. commerce”34. The Reserve Bank in its January 2014 Monetary Policy
Statement stated its intention to come up with an electronic payment system
regulation35 to date no such regulation is in place. The immediate question is
then how a nation without a guiding legal framework can deal with a
cryptocurrency such as bitcoins. The answer is it’s not really an issue as even
the advanced economies with all sorts of electronic banking regulation and
supervision equally do not a clear legal framework to deal with Bitcoin and are
in any event seized with the notion of protecting their own currencies a
challenge Zimbabwe does not seem to face.
The fact that Bitcoin is a payment system as stated above having a currency unit
means for Zimbabwe three key legal instruments come into play, namely the
National Payment Systems Act, the Reserve Bank Act as well as the Exchange
Control Regulations.
Applicability of the NationalPayment Systems Act
This Act provides basic guidance in the setting up and operations of payment
systems. For a payment system to be recognised by the Reserve Bank it should
have the following objects as set out in s 3(1) of the Act;
a. clearing of payment instructions between financial institutions
participating in the system
b. the settling of obligations arising from the clearing of payment
instructions whether through,
i. netting of the obligations
ii. set off
iii. individual settlement of each credit transfer or payment instruction
c. discharge through a settlement system established by the Reserve Bank
The Act in s18 prohibits the making of payments or settling what is due
to third parties by any other personor institution other than a participant
in a recognised payment system.
What is key however is that the Act defines a financial institution as a
banking institution registered in terms of the Banking Act or any other
institution that lawfully engages in banking activities.36
34 Bimha supra at page 4
35 Para 118
36 S2 of the Act
7. It is contended that bitcoin based companies can thus be set up or operate
in Zimbabwe as registered companies/entities and can apply for the
recognition of their payment system. The recognition of the payment
system is not hard and fast as the Act authorises the Reserve Bank to
recognise payment systems for different classes of financial institutions,
different areas of Zimbabwe, different classes of payment instructions37.
The significance of this is heightened when one takes into accountthat
payment instructions are defined in the Act to also mean instructions
made by electronic means.38
The issue the Bitcoin community might have with this set up is that the
supervision and regulation they pride their system not to have will not be
in existence as the Central Bank will have a role to play in the set up and
consequent administration of payments between entities39. This however
should not prove to be a deterrence as the movement towards regulation
of Bitcoin is there on a global level and this regulation will be less
stringent in Zimbabwe for the moment due to the absence of a clear
regulatory mechanism as stated above. Depending on the venture Bitcoin
companies might seek to establish in Zimbabwe if the terms of this Act
should be accepted as being applicable then partnerships with banking
institutions will be inevitable40.
Through the provisions of S20 (1) of the Act the RBZ has set up the
National Payment Systems Department (NPSD) which oversees the
development of payment systems, their infrastructure and the setting up
of rules and regulations. The NPSD has proactively sought to encourage
innovative solution for payment services modernisation41.
Taking a cue from the pro modernisation of the payment systems by the
RBZ the introduction of Bitcoin and its related computer technology
would be an ideal evolution of the payment systems in Zimbabwe, more
so when one considers that bureau de changes are being reintroduced in
the country. The only apparent challenge in the establishment of Bitcoin
as a payment system in Zimbabwe is the requirement that the non-
37 S3(2) of the Act
38 S2 of the Regulations
39 “with Bitcoin ,there is third party watchingover the participantsof economic activity,approvingtheir
conduct and charginga fee to do so” Erik Voorhees supra
40 See FinMark Trust report supra at page 16 were it is stated that non-bankingentities have to work with a
bank
41 See FinMark Trust supra at page 22
8. financial institutions have to partner a bank for it to operate. Considering
that “many Zimbabweans are making the conscious decision to avoid
banks especially for savings”42 it is prudent to actively lobby for the
removal of this particular provision of the law to enable full
establishment of Bitcoin as a payment system in the country.
Relevance ofthe Exchange Control Regulations and the Reserve
Bank Act
If on paper the Bitcoin system can be adopted in Zimbabwe as discussed above
the other pertinent issue is whether the currency unit bitcoins can be recognised
as a currency in Zimbabwe. In terms of s40 of the Reserve Bank Act the Central
Bank is authorised to issue currency. This is no longer applicable as the bank is
not making its own currency as previously stated. The key aspect in Zimbabwe
will be how bitcoins will be treated i.e. will they be seen as a currency or not. In
terms of the Exchange Control Regulations foreign currency is defined43 as a
foreign currency note or coin. A foreign currency document means a bill of
exchange, traveller’s cheque, letter of credit or other document which is issued
in or outside Zimbabwe to enable the personto whom it is issued to obtain
directly or indirectly any foreign currency note or coin from some other person
on the credit of the personissuing the document. A foreign currency note or
coin means any currency other than Zimbabwean currency which is legal tender
in a country other than Zimbabwe.
To the extent that bitcoins have been recognised as legal tender in certain
jurisdictions such as Germany44 and with guidance from Brazil45 it can be
argued that for purposes ofZimbabwe bitcoins are foreign currency and as such
their use and operation should be permissible at law. The Reserve Bank will
however have to make some formal statement of recognition to enable
unhindered use in the nation.
Conclusion
The position adopted by Government of Zimbabwe46 that it is important to
allow economic actors to use whatever currencies are convenient for them to
42 FinMark Trust supra at page 35
43 S2 of the Regulations
44 Germany recognises bitcoins aslegally bindingfinancial instruments as provided in s1(11) of the German
BankingAct as they areconsidered units of accountand such arerelated to foreign currency.
45 In 2013 Brazil enacted Law No 12 865 which created the possibility of the normalisation of mobilepayment
systems and the creation of electronic currencies
46 Para 309 of STERP
9. transact in has enabled divergent payment systems to come to the fore in
Zimbabwe including mobile payment systems however there is still room for
the continued innovation to enable currencies such as bitcoin to function in
Zimbabwe. The laws currently in place permit the application of the said
currencies should the authorities adoptan open interpretation of the provisions
of the law as has been attempted above. The combination of the environmental
factors (wherein a large number of people who are exposed to the internet but
are hesitant to use banks) as well as the law of the land provide in ideal scenario
for the setup of bitcoin based companies in Zimbabwe as “the use of the multi-
currency system tends to eliminate the risk of exposure to sudden, sharp,
devolution of currencies since consumers are free to switch from one currency
to the other with relative ease. This results in competitiveness on the part of the
Country”47.In any event Bitcoin offers a more convenient and costeffective
method which would make it attractive to the citizens who desperately need an
alternative payment mechanism to the ones currently in place48.
47 See Zimdollar versus Multicurrency supra
48 See page 17 of the FinMark report supra were itstated that “it is likely thatin the shortto medium term any
new electronic payment channels will only besuccessful if they providea convenient and affordableway to
reliably access cash”