Cryptocurrencies are not legal tender in Zambia-BoZ

The Bank of Zambia has warned that Cryptocurrencies are not legal tender in Zambia and that all activities related to their buying, trading or usage are performed at owner’s risk.

The Central Bank says it has observed an increasing public interest in cryptocurrencies as evidenced by the growing number of enquiries that BoZ has been receiving on the subject.

In a statement, the Bank of Zambia said while cryptocurrencies have some monetary characteristics, such as, being used as a means of payment on a person to person basis, cryptocurrencies are not legal tender in Zambia.

“In order to safeguard the interests of members of the public and to maintain the integrity of the financial system in Zambia, the BoZ states as follows: 1. Section 30 of the Bank of Zambia Act vests the right to issue notes and coins exclusively in the BoZ. To date, BoZ has not issued any form of cryptocurrency. Cryptocurrencies are not legal tender in the Republic of Zambia; 2. BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner’s risk.”

It adds, “3. The general public should therefore fully understand and be aware of the risks associated with the use of cryptocurrencies. 4. Some of these risks include money laundering, financing activities of terrorism and general consumer protection risks such as fraud and hacking, to which in most cases, no legal recourse would be available to customers due to the unregulated nature of cryptocurrency-related transactions.”

“5. In line with BoZ’s position that regulation should not constrain but enable innovation, BoZ will continue to actively monitor all developments.”

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