Dodging the inevitable, a critical analysis of the adoption of cyptocurrency on Zimbabwean banking legal framework

Abstract

Since the introduction of virtual or digital currencies around the year 2009, the global financial and investment sphere has never been the same. Cryptocurrency, in particular Bitcoin has swept the world away and has virtually littered financial literature. Some users of cryptocurrencies consider them as digital currency which monetary value although not issued by any central bank, while others consider them as digital assets and thus hold on to them as investments rather than currencies. Be that as may, the main question that arises is the regulation of cryptocurrencies. Globally, there is no consensus on the regulatory framework of cryptocurrencies due to different classification and legal status that they are given in different jurisdictions. Suffice to say, some countries recognize them as taxable assets while other countries have banned them outrightly. Other countries who have not pronounced themselves on the subject remain in the middle ground. Zimbabwe, in particular, has not taken a firm stand on the issue of cryptocurrency. At one point the RBZ banned its use, and later, the government intimated that it was on course to develop a legal framework for the use of cryptocurrencies in Zimbabwe. This paper seeks to look at the regulation of cryptocurrency in Zimbabwe, whether the current legal framework prohibits its use or otherwise. The paper will also look at how the law can be developed to ensure that people can trade in cryptocurrency while under the protection and regulation of the law.