The Reserve Bank of Zimbabwe (RBZ) has warned members of the public against using Bitcoin, one of several virtual currencies being used outside the country, saying its use is illegal in Zimbabwe.
Virtual currency is defined by the Financial Action Taskforce as a digital representation of value that can be digitally traded and functions as a medium of exchange, a store of value and unit of account, but with no legal tender status.
“The Reserve Bank of Zimbabwe wishes to advise members of the public that the use of and trading in cryptocurrencies or virtual currencies is not regulated by the country’s laws and presents risks such as money laundering, terrorism financing, tax evasion and fraud,” he said.
“Under the existing legal and regulatory dispensation, any person who invests in virtual currencies or participates in any transaction involving virtual currencies does so at own risk and will not have legal protection from, or recourse against, any regulatory authority.”
Dr Mangudya said virtual currencies were attractive to money launderers and other criminals because of their anonymity and ease with which transactions could be conducted on the Internet and across borders.
“In this regard, virtual currencies are not in any way attached to notes and coins circulating in the country. Virtual currencies do not have legal tender status in Zimbabwe or in any jurisdiction in the world,” he said. Dr Mangudya noted that the use of cryptocurrencies was on the increase both locally and globally and there were entities facilitating their purchase and sale in and outside Zimbabwe.
“There are many virtual currencies in circulation, with Bitcoin being one of the most popular,” said Dr Mangudya. Some traders and dealers had been pushing for the use of the virtual currencies, arguing they provided the unbanked public with an opportunity to regain financial control.
But the central bank is on record as saying that while at face value there appeared to be some economic benefits, it discouraged its use, saying any form of unregulated alternatives should not be tolerated.
Bitcoin, which was brought to popularity in Zimbabwe through the MMM pyramid scheme, whereby members could “give help” and “ask for help” in the form of bitcoin, managed to attract as many as 66 000 people. When it eventually crashed, a number of people were “burnt” and left with a sour taste. Some Bitcoin start-ups in Zimbabwe include Bitmari, a company which enables Zimbabweans to send money across countries in Africa at substantially lower costs.- state media
5 Replies to “Mangudya Issues Warning Against Bitcoin Use”
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John Panonetsa Mangundya is another big example of a failed governor. He is useless. Remember he told the nation that he would resign if the bond strategy fails. Now what is he still doing? What does he have to say about the current situation? He is just other Gedion. Be honourable and resign before you put the country in worse trouble. Why do you people don’t want to see Zimbabwe doing well. Now you are giving threats. You have failed to address the root cause of the problem. I saw you addressing people once and have doubts if you are capable. You are supposed to be RBZ of a country not a tuck shop. Why don’t you try to get ideas from Tsumba and Moyana. These guys were better than you by far. Anywhere, JUST RESIGN AS YOU SAID in 2016. I don’t see us
Zimbabwe going anywhere with you as RBZ governor
Cde Mangudya, stop fear mongering.
Zim$ was regulated by the county’s laws and where is it now? The USD$ was guaranteed by the National bank in Zimbabwe how come it was all externalised? Your bond notes are nowhere to be seen so in short don’t tell me what to do with my money.. I’ll invest it where I see fit and I am aware that there is a risk attached to every investment decision I make. Once upon a time I had money in the Zimbabwean banking system and it vanished just like that and there was no recourse. So please deal with your liquidity challenges and let me deal with my bitcoins.
mr Governor must tell people that your Zimbabwe doesn’t support bitcoins,Zimbabwe don’t have the condition and access to this system .Don’t invent a lot of things to support your views. the truth is that, the technology is advanced nowadays and it doesn’t wait for your country. It will take Zimbabwe some years to join the world of technology. bitcoins are neccessarily used there is no suspicious about using them.Zimbabwe must get into track with others now in oder to be updated.
Crypto currency is not going anywhere. Governments dont like it because the dont have control. You get bitten when using bit coin if you use middlemen. The idea of bitcoin is to get rid of the middlemen. Use it as a P2P to get the best benefit from it. If not sure how visit the bitcoin website for more info.
Dude must just shut up, especially after people savings and pensions vaporised from zanupf monetary system. Bitcoin is far much better than zanupf banking system