Blockchain Implementation Study Launched By Zimbabwe’s Central Bank

Blockchain, News | July 6, 2018 By:

The Reserve Bank of Zimbabwe (RBZ), the country’s central bank, is studying blockchain technology and plans integrate it into the bank’s business processes.

During the Alpha Media Holdings’ Banks and Banking breakfast meeting held in Harare, RBZ governor John Mangudya said the central bank has initiated studies to investigate blockchain and its possible applications. The governor cited several developed countries like China, the US, and the UK utilizing blockchain to improve their existing operations. However, Mangudya made it clear that he is not referring to cryptocurrencies.

“I did not say cryptocurrencies because it is lower than blockchain,” he said. “Blockchain encompasses all the cryptocurrencies such as bitcoin… and we are saying we are putting in motion studies, ways and means of investigating that blockchain technology.”

While stressing that the central bank should not be “left out” on blockchain developments, Mangudya said a cautious approach is needed.

“What we are against as I have always said is to do things which are not regulated because we need to know where these bitcoins are being mined and do want to hunt them,” the governor said. “So while we want to embrace things, we need to know where they are coming from. If you embrace mobile banking platforms we know that there is a trust account.”

In May of this year, RBZ issued a circular ordering all financial institutions to discontinue relationships with crypto exchanges within two months and begin to liquidate existing crypto-related accounts. Norman Mataruka, RBZ director and registrar of banking institutions, said the reason for the move was to protect the public and safeguard the integrity and safety of the country’s financial system.