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Bank of Zambia says Crypto Aren’t Legal Tender

Zambia’s namesake bank issued a warning against the buying and trading of digital currencies in the nation, claiming that they are not legal tender and should be approached with caution.


 

The country’s Central Bank reported that it has seen an upwards trend in the public towards crypto, and that the BoZ has gotten increased enquiries regarding digital currencies.

Not Legal

In their release, the BoZ stated that as crypto might have similar features to fiat currencies, like their ability to be a P2P payment method, they are yet to be classified as legal tender.

To continue protecting public and consumer interests within Zambia, BoZ has a set of guidelines that they follow:

The Bank of Zambia Act holds the authority to issue currencies in the bank exclusively, but they have yet to issue any as of yet. Crypto is not legal as currency in Zambia as a whole.

BoZ has no powers to watch over, manage or regulate cyrpto, thus any crypto-related transactions are at the expense of the owner.

The public needs to comprehend and be advised of risks when investing in crypto.

Many risks include such crimes as fraud and laundering, or terrorist-related activities. No legal assistance will be provided to consumers dealing with the unregulated currencies.

The BoZ added that they will pursue innovation, and continue to monitor any future developments.


1 year ago

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