The Reserve Bank of Zimbabwe (RBZ) is reportedly in the process of establishing a regulatory sandbox, focusing on crypto firms across the nation. 

Reported by Chronicle on March 13th, Josephat Mutepfa – deputy director of financial markets and national payment systems for RBZ – revealed that the bank is putting in efforts to come up with a proper framework for regulation, which ultimately requires all businesses associated with crypto to be under a particular regulatory sandbox. 

The sandbox was designed with a purpose to enable RBZ to grant a particular firm authorization for independent functioning. 

“Once you enter the sandbox you either exist as a bonafide product to enter the market or you are guided to say that you need to partner a bank, a mobile money platform or your product needs to be licensed like a microfinance company.” Musephat reportedly remarked during the Sound Prosperity Economic Forum hosted in Bulawayo. 

The increasing number of population in the country, especially young people, who in Musephat’s words are “facing challenges of having capital”, is the primary reason that led to the initiative for proper regulation for crypto.

 Zimbabwe has bad reputation for its tendency to hyperinflate, as the  Zimbabwe dollar underwent 3 re-denominations since officially in circulation from 1980, for cancelling out the redundant zeros in value.

All the problems in Zimbabwe may reportedly have been one of the motivation for the upsurge of crypto-focused peer-to-peer (P2P) exchanges, and with suitable regulatory initiatives to drive the adoption rate, this could be the viable solution for resolving monetary problems.