By Varaidzo Zhakata
ZIMBABWE Stock Exchange listed Commercial Bank in Zimbabwe (CBZ) has signed a Memorandum of Agreement (MoA) with Apollo Fintech to set the tone for development of a gold-backed currency for the southern African nation.
In its recent efforts to embrace the Fintech revolution, Zimbabwe has set out to partner up with local Fintech professionals to create the country’s first-ever gold-backed digital crypto currency.
Zimbabwe is initially embracing the Fintech revolution; hence the alliance is expected to allow citizens to access the Apollo wallet for digital-currency payments, thus making life easier for the transacting public.
“We are excited to announce that Zimbabwe will be a priority country in implementing national solutions. Apollo will be working with CBZ, a government backed entity and the largest bank in Zimbabwe, to develop and implement 3 of Apollo’s national solutions for the nation of Zimbabwe.”
Apollo will build up and run three national solutions of US$17 million in country, whose economy has been battered by hyperinflation.
According to the Reserve Bank of Zimbabwe’s (RBZ) deputy director for financial markets and national payment systems, Josephat Mutepfa, since Zimbabwe’s central bank is enthusiastic on creating a vigorous selection structure to ensure that participating crypto businesses sculpt their operations to ensemble existing financial regulations in the country.
As part of its initial plans for the crypto-regulatory sandbox, the RBZ is reportedly focusing on companies dealing in crypto currency-related trading and payment.
“We have already started to come up with a Fintech framework because in regulation, everything should be well-structured. The framework, which is a regulatory sandbox, will be assessing crypto currency companies as to how they are going to operate. The sandbox will be an experimenting zone. Once the sandbox is there, there will be an application criterion, which will also act in the same capacity as the sandbox,” he said.
For Mutepfa, the proposed sandbox signals a U-turn by the RBZ and the Zimbabwean government concerning its position on the budding digital economy, following a 2018 ban on financial institutions participating in crypto transactions.
Apollo tweeted that this move is of concern in establishing national solutions. Apollo Fintech is developing world-shaping Fintech solutions for a global economy. Its product categories include Government Solutions, Commercial Products and Consumer Products.
By Varaidzo Zhakata