The Reserve Bank of Zimbabwe has announced today that they have decided to forbid all banking and financial businesses to stop all cryptocurrency related transactions and service lending to known cryptocurrency exchanges. This according to a local online newspaper.
The Reserve Bank of Zimbabwe is the central bank of the country and enacts the monetary policy for all derived monetary institutions, who must follow their rules to keep operating on Zimbabwean soil.
The Director and Registrar of Banking Institutions of the Reserve Bank of Zimbabwe, Norman Mataruka, pointed out that this resolution would imply closing all account and terminating all financial relationships with known institutions that transact in cryptocurrencies and also existent cryptocurrency exchanges. These measures would be taken in a period of time of 60 days since their announcement; all funds from closed accounts will be restituted to the bank account holders.
He stated that:
CRYPTOCURRENCIES HAVE STRONG LINKAGES AND INTERCONNECTEDNESS WITH STANDARD MEANS OF PAYMENTS AND TRADING APPLICATIONS AND RELY ON MUCH OF THE SAME INSTITUTIONAL INFRASTRUCTURE THAT SERVES THE OVERALL FINANCIAL SYSTEM
Zimbabwe has not regulated cryptocurrency use or cryptocurrency trading, and the declarations of Mataruka imply that they don’t want the cryptocurrency system to be intertwined with the traditional payment structure till there is regulatory clearness.
Also, the governor of the Central Bank, John Mangudya stated that there was no approved or registered exchanges in Zimbabwe, and he remarked that the Zimbabwean government had not conceded or approved the use of these types of crypto assets in that country.
With this announcement, the Zimbabwean Central Bank joins the recent trend of cryptocurrency institutional ban that started with the Reserve Bank of India also banning cryptocurrencies. Iran central bank has also banned cryptocurrency trading, but with little to no success; people have flocked to use crypto due to the new sanctions established by the USA government after exiting their nuclear deal.