Central Bank Of Zimbabwe Supports A Trading Ban On Cryptocurrencies
A new development in the crypto world sees Zimbabwe‘s Reserve Bank filing court papers supporting the ban of crypto exchange, Golix, from dealing with the country’s banks. According to the bank, allowing Golix to use formal banking channels is a risk to the financial system of the country.
Working with cryptos is risky, claims the Reserve Bank
Despite Zimbabwe’s efforts to open up to cryptos, their Reserve Bank doesn’t seem to share the overall excitement.
According to the bank, allowing financial institutes to process crypto transactions puts at risk the country’s financial system, especially since the platform in question is unregulated and unregistered. This was confirmed by John Mangudya, the governor of the Reserve Bank of Zimbabwe, who filed the opposing papers, in which he states that the exchange is providing banking services despite the fact that it is not a bank, or even a licensed financial institution.
The use of cryptos is safe
Golix’s officials claim that the exchange has a strict set of rules, especially when it comes to know-your-customer principles. The exchange emphasizes that a large part of their efforts is focused towards preventing the use of cryptos for illegal activities.
Due to foreign currency shortages that the country is currently facing, many of its citizens were forced to seek alternative methods of making cross-border payments or even to buy merchandise from international providers. Cryptocurrencies, mainly Bitcoin, turned out to be one of the most practical methods of bypassing these difficulties.
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