Zimbabwe warns against cryptocurrencies

May 14, 2018
Bitcoin has sparked interest in Zimbabwe as the Zimbabwe dollar was abandoned in 2009 due to hyperinflation.

Zimbabwe's central bank on Monday warned against trading in cryptocurrencies, saying virtual currencies such as bitcoin were not regulated in the country.

Bitcoin has sparked interest in Zimbabwe as the Zimbabwe dollar was abandoned in 2009 due to hyperinflation and the system relies on scarce US dollar banknotes.

The lack of US banknotes has left Zimbabweans queueing for hours outside banks and often unable to withdraw their cash.

Zimbabwe also has a "bond note" whose value is supposed to be pegged to the US currency, but which trade at a significantly lower rate in reality.

"Virtual currencies such as Bitcoin and litecoin do not have legal tender status," John Mangudya, Zimbabwe's central bank governor, said in a statement.

Mangudya said the central bank had "directed all banking institutions not to provide banking services to facilitate any person or entity in dealing with or settling ."

"The nature of cryptocurrency transactions make them the currency of choice for money launderers and other criminals," he added.

President Emmerson Mnangagwa has been battling to revive the ailing economy after long-time ruler Robert Mugabe was ousted last November.

Explore further: Central banks warned to weigh risks of virtual currencies

Related Stories

Central banks warned to weigh risks of virtual currencies

March 12, 2018

A global financial body warns central banks should carefully weigh the risks before introducing their own virtual currencies, saying such innovations could risk destabilizing banking systems and unleash disruption across ...

Recommended for you

Under-fire Apple removes 25,000 apps in China

August 20, 2018

Apple said Monday it had removed many gambling-related apps from its Chinese app store as the US giant comes under scrutiny amid trade tensions between Beijing and Washington.

Robots as tools and partners in rehabilitation

August 17, 2018

In future decades, the need for effective strategies for medical rehabilitation will increase significantly, because patients' rate of survival after diseases with severe functional deficits, such as a stroke, will increase. ...

Security gaps identified in internet protocol IPsec

August 15, 2018

In collaboration with colleagues from Opole University in Poland, researchers at Horst Görtz Institute for IT Security (HGI) at Ruhr-Universität Bochum (RUB) have demonstrated that the internet protocol IPsec is vulnerable ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.