Reserve Bank of Zimbabwe warns against bitcoin use

The Reserve Bank of Zimbabwe (RBZ) has warned the country’s citizens of the risks associated with bitcoin.

The central bank’s Senior Executive of the National Payment Systems department Josephat Mutepfa, told the event’s audience—which primarily consisted of financial startups, experts, and entrepreneurs—that despite the popularity of Bitcoin, the Reserve Bank of Zimbabwe discourages the use of bitcoin. This is due to the lack of regulatory frameworks for exchanges and startups providing digital currency related financial services.

As such, citizens who use it could be exposed to risks associated with untraceable transactions. 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.

The Reserve Bank of Zimbabwe is the central bank of Zimbabwe.