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Zimbabwe Stock Exchange Ready to Adopt the Blockchain, But Needs Regulatory Certainty

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According to Justin Bgoni, the CEO of the Zimbabwe Stock Exchange (ZSE), the entity is interested in embracing the blockchain technology. However, he noted that clear regulations must be in place before ZSE takes this step.

Speaking to a local news outlet about the blockchain’s advantages, Bgoni said,

Each transaction, you can see who owns it so it is easy to audit it that is why people like it, is easy to verify it, it is transparent and takes away fraud, that part of the technology you can see everything and it makes sense, it is definitely an area that ZSE can explore.

Regulation in the Nascent Sector

While Bgoni is all bullish about the blockchain, he noted that ZSE cannot make any moves until there are clear regulations in place.

He added,

Then there is the money side to blockchain technology. This is a bit difficult, in terms of regulation, we are not yet clear on this and we do not want to do something where regulation is not clear as an exchange. But the technology side is very good,

Bgoni also spoke about the possibility of introducing blockchain-based products and services. These include real estate investment trust securities (REITS), mineral commodities exchange, and exchange-traded funds (ETFs). He believes that these products have the ability to expand the market.

Zimbabwe Continues Getting Attention from the Blockchain and Crypto Space

After the collapse of Zimbabwe’s fiat currency in 2015, the country has been attracting a lot of crypto proposals. This attention ranges from a publication claiming Zimbabwe is the best place for crypto firms to opening a blockchain summer school in the country. Regardless of the attention, the Reserve Bank of Zimbabwe (RBZ) announced that using BTC in the country was illegal.

However, Norman Mataruka, the director and registrar of RBZ said the bank had started investigating the risks of crypto. He added RBZ would have to create a regulatory framework for crypto coins before legalizing them.

Similar News

In April, a report unveiled that the Jamaica Stock Exchange (JSE) was planning to pilot BTC and ETH trades. The entity collaborated with Blockstation, a Canada-based FinTech in this test. The trial aimed to enable crypto trade in a regulated and secure environment.

In a move to embrace the nascent industry, US-based Nasdaq, the second largest stock market by capitalization, also listed BTC and ETH indices. Named BLX and ELX, the indices would obtain data from several exchanges to provide a single price point for BTC and ETH. Reportedly, this “helps traders get in and out of a given position”.

Switzerland-based SIX stock exchange also listed an XRP Exchange Traded Product (ETP) in April. The XRP ETP is named Amun Ripple (AXRP).

Do you think Zimbabwe will create a regulatory framework that will allow ZSE to adopt the blockchain technology? Let us know in the comments below.

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