Zimbabwe Latest News: Thumbs Up to Crypto ETFs
Just five years after the Reserve Bank of Zimbabwe cracked down on cryptocurrency processing, the country’s stance on crypto seems to be softening and crypto ETFs could be on the way.
Finance and Economic Development Minister Professor Mthuli Ncube has admitted cryptocurrency is ‘actually unstoppable’ and indicated regulation for trading digital assets is on the way for Zimbabwe.
Crypto ETFs on the Victoria Falls Stock Exchange platform is part of the consideration.
Ncube was speaking during the Global Business Forum in Dubai, outlining investment opportunities in Zimbabwe.
Zimbabwe 'Ready to Make Concessions'
He said the country is ready to make concessions on cryptocurrency, admitting it is impossible to run away from cryptocurrency.
He said: ‘Our view is that we do not want it to be a currency. Want this to be an investment class. Through the Victoria Falls Stock Exchange platform, we will try to create crypto based products there, which are ring fenced within the offshore zone.
‘We have taken the first step already and created a sandbox, at the Reserve Bank of Zimbabwe (RBZ), where the idea and everything else is being tested in a safe regulated environment where it will then migrate to this safe Victoria Falls environment.’
Ncube continued: ‘I was actually quite surprised, I think easily, 30 per cent of our youth are invested in crypto, easily. It is actually unstoppable, but the idea is to then regulate it properly; create a safe environment for everyone.’
Partnership With Dubai Investor
The Ministry of Finance is, he said, working with an investor in Dubai to develop a crypto index, which requires the Zimbabwean Treasury to work out how to weight a crypto product.
Ncube added: ‘So, once we have the weights of the various crypto assets arising from rating, we can then create an index; on the back of the index, you can then create a crypto ETF (exchange traded fund).
‘That is what we are looking at and some investors are working with us to create the exchange traded funds; it's up to the investors to do that, our job is to support.
‘But we invested a lot in trying to understand it; so that is where we are heading in terms of crypto currencies.’
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