Zimbabwe’s central bank has ended financial institutions from trading or offering to bank for any cryptocurrencies. They must not trade, hold, or transact any virtual currencies. This was issued on May 11, 2018 and states that any banking services dealing with cryptocurrencies must be prohibited.
This includes maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to the purchase or sale of virtual currencies.
The circular explains that the Reserve Bank of Zimbabwe wants to safeguard the integrity of their payment system and defend against money laundering and criminal activities also. The deadline is July 10, 2018 to end all crypto exchanges.
This was due to a cash shortage that has gone awry over the two years and citizens had bank accounts that shrunk. Interest rose and investment in Bitcoin was prohibited to protect against the diminishing value of their currency.
After the RBZ issued its statement, the UK loaned $100 million to companies in Zimbabwe via Standard Chartered Bank and it’ll be the first commercial loan to Zimbabwe in over two decades for their private sector to date.
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