The cryptocurrency aficionados living in Zambia must be depressed to know that Bitcoin is no longer a legal tender in the country. Responsible for structuring and implementing monetary policies for the country’s economy, the Bank of Zambia has issued a public notice on Bitcoin and other digital currencies.
The Bank of Zambia (also considered the central bank of Zambia) was receiving lots of inquiries related to Bitcoin’s legal status in the country. Due to this momentous rise of queries related to the virtual currencies, the central bank officials thought to “safeguard the interests of members of the public and to maintain the integrity of the financial system in Zambia” with its stance on the virtual currency.
According to the above notifications released by South African country’s central bank, it is clearly understood the crypto enthusiasts must be aware of the risks associated with the use of cryptocurrencies. A local news report released by Lusaka Times stated some of the risks such as money laundering, online frauds or hacking with the application of crypto malwares, financial activities of terrorism to name a few. To such cases, no legal remedy will be provided to the customers due to the unregulated nature of virtual currency-related transactions.
hat’s the reason the bank of Zambia has clearly stated that neither Bitcoin nor any other cryptocurrency will have legal tender anymore. It has also stated that the “central bank does not oversee, supervise nor regulate the cryptocurrency landscape. Hence, all the activities related to their buying, trading or usages are performed at the complete risk of the owners.
The Head of Communications of Bank of Zambia issued a statement on its official site on Friday. According to a statement given by A Zambian economist, Chibamba Kanyama to Bitcoin.com that the digital currency market obviously developed well after the Bank of Zambia Act was instituted and there has been so far no endeavor on the part of Zambian government to revise it. Had the act was revised, the bank would have been liable for something that is outside of its domain.
One Redditor, UniqueCandy has expressed his opinion against Zambian bank’s decision saying that the planet’s largest cryptocurrency Bitcoin and other digital currencies must be embraced to make a nation developed. There are a lot of other users over Reddit who have not accepted the decision taken by the bank.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]