Zimbabwe’s central bank has banned the domestic banking firms from conducting transactions with virtual currencies or cryptocurrencies including trading and processing payments.

The move aims to safeguard the integrity of the country’s financial system as well as protect common people from losing their investments.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The Reserve Bank of Zimbabwe governor John Mangudya stated that it has not provided licence to any entity to deal in these crypto currencies, reported Reuters.

He was quoted by the news agency as saying: “The Reserve Bank has directed all banking institutions not to provide banking services to facilitate any person or entity in dealing with or settling virtual currencies.

“The nature of cryptocurrency transactions make them the currency of choice for money launderers and other criminals.”

In a statement, the Reserve Bank of Zimbabwe stated that “financial regulators around the world have identified the dangers and risks presented by virtual currencies to financial stability.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

These transactions are prone to loss due to price volatility, fraud, money laundering and other criminal activities.

Following the decision, all financial institutions of the country are banned from making any kind of transaction using these virtual currencies.

Any entity, which is engaged in providing services using cryptocurrencies, need to terminate all their activities in virtual currencies within 60 days.

Currently, Golix and Styx24 are the two trading platforms for virtual currencies active in Zimbabwe .

Recently, Golix opened an ATM machine to facilitate cryptocurrency transactions.