[2018-10-14]Bank of Zambia Warns Cryptocurrencies Are “Not Legal Tender”

[J_Crypto]

The Bank of Zambia (BoZ) has released an official communiqué reminding its citizens that cryptocurrencies “are not legal tender in the Republic of Zambia” and asserting its exclusive right to issue currency, further advising them to “be aware of the risks associated with the use of cryptocurrencies”. It is unknown what exactly prompted the BoZ to issue its statements, with the bank only citing an “increasing public interest in cryptocurrencies as evidenced by the growing number of enquiries that BoZ has been receiving” as its reason. Part of the BoZ’s statement is not unlike a similar one rendered last February by the Zambian Securities and Exchange Commission, in which the Commission urged investors to exercise caution in dealing with assets outside its jurisdiction of regulation.

Zambia on the Blockchain Zambia has recently been in the crypto news cycle, with the country signing a Memorandum of Understanding with the Medici Land Governance (MLG) venture, a subsidiary of Overstock.com, in August, in order to begin using blockchain technology to store land registry title data. Medici at that time simultaneously signed an agreement with the World Bank to put its method into practice all over the so-called developing world. Medici and the World Bank, in signing their agreement, aim to effect a sort of revolution in the ability of “the developing world [to] secure the property rights [and] infrastructure needed to overcome many of its challenges”, in the words of Overstock.com founder Patrick Byrne, an enthusiastically pro-blockchain investor.

Last month, MLG was again in the headlines as Byrne personally purchased 43% of the company, which according to MLG CEO Dr. Ali El Husseini would “provide [MLG] the additional capital needed to develop systems for Zambia, the World Bank, and other potential partners so that all people can use their property assets as collateral to enter global commerce and markets.” Zambia's Struggles The BoZ announcement comes before what many predict will be a general crisis in Zambia’s economy, as the country’s un-repayable development loans both from Western institutions such as the International Monetary Fund (IMF), and increasingly from Africa-hungry Beijing, foster ever more corruption and threaten to unravel Zambia as a whole. Many have speculated that people suffering the precarities of stricken economies, such as Zambia’s, are perfect candidates to embrace the use of cryptocurrencies.

https://www.cryptoglobe.com/latest/2018/10/bank-of-zambia-warns-cryptocurrencies-are-not-legal-tender-in-the-country/

[Dominic_Johnson]

This doesn't mean something is 'illegal', as it is only a bank suggesting same, not the government

[Kakmakr]

The smaller countries are knee deep in debt and they must do anything in their power to protect and strengthen their weak reserve currencies. It is not in their best interest to support a competitive currency that are not controlled by their government, because the strength of that currency, will determine how quickly they can repay their loans.

Most of the debt are uncontrollable and some countries like China are already claiming that they own smaller countries, because they cannot repay the loans. 

[dyalikedags]

Do you think a weaker currency could peg to btc in order to stabilize against those loans which are probably in usd? I know the marshall islands tried to make the SOV and was hit with a pretty strong backlash from the IMF and venezuela has its oil backed petro but hasnt yet seemed able to stop any of the pain from the hemorrhaging bolivar. I just dont see the world bank/imf/g7 playing nice and allowing these independent cryptocurrencies to just start popping up everywhere and threatening the petrodollar. interesting times.   

[cr1776]

Zambia is afraid that their citizens will have an option to protect themselves from the inflation in Zambia.  It isn't Venezuela or that range yet, but now is the time for the people of Zambia to protect themselves from the thieves in government who will silently steal the value of their savings every year.

[dyalikedags]

"but now is the time for the people of Zambia earth to protect themselves from the thieves in government who will silently steal the value of their savings every year.

[coolcoinz]

Do you think a weaker currency could peg to btc in order to stabilize against those loans which are probably in usd? I know the marshall islands tried to make the SOV and was hit with a pretty strong backlash from the IMF and venezuela has its oil backed petro but hasnt yet seemed able to stop any of the pain from the hemorrhaging bolivar. I just dont see the world bank/imf/g7 playing nice and allowing these independent cryptocurrencies to just start popping up everywhere and threatening the petrodollar. interesting times.   

In case of Venezuela people are not buying lies of their president. Petro is like an ICO, it has to gain interest of the public to become worth something. Without it it's just a piece of code that nobody wants to use. Think of all those android games being developed every year. Many of them don't get downloads and become abandoned by developers. Same thing will happen to 99% of altcoins, and that includes Petro. If a country is in economic ruin launching a cryptocurrency won't help.

[dyalikedags]

i forget where i read that venezuelan oil purchases paid for in petro will be given something like a 30% discount; would be a huge incentive for oil companies to take a risk and sidestep the sanctions. Could also force opec to lower their own prices in retaliation.