Zimbabwe’s biggest bank, Fidelity Bank, is looking into leveraging cryptocurrencies in its operations. The bank made the announcement on its website, saying that it has already “determined the bank’s response to the opportunities and challenges presented by cryptocurrencies.” It continued by saying that cryptocurrencies are “novel, complex and ever-evolving. However, they are increasingly becoming an important part of the world’s economy and financial system.”
Zimbabwe has been on a downward spiral over the past decade, which has been accelerated by the rapid rise in hyperinflation. However, the country’s biggest bank appears to have found a potential solution. According to a recent news report by Bloomberg, FSD Bank has looked at methods to “leverage cryptocurrencies” as a means to improve the country’s financial system.
Zimbabwe’s biggest bank has said it is looking at various methods of entering the cryptocurrency space, though it has yet to determine what type of cryptocurrency to support. According to a report on Business Live, CBZ Holdings CEO, Tafadzwa Chinamo, said the range of cryptocurrencies available has increased in recent months and it is looking at leverage those that are viable.
One of Zimbabwe’s largest financial institutions, CBZ Holdings, has said it is considering cryptocurrencies and other emerging digital innovations. According to Mark Holtzman, president of the financial institution, CBZ is open to new innovations because they can open up new opportunities in the future.
Innovations that open new markets
In an interview with a local publication, Holtzman also acknowledges that innovations like cryptocurrencies, and by extension blockchain, fintech, betech and techfin, are meeting some needs. On his organisation’s stance on such innovations, the chairman said: We believe that these innovations have the potential to strengthen our business and customer service practices and open up new market opportunities. Holtzman adds that such opportunities can be realized through collaboration and cooperation with the same fintech companies. As a result, the chairman said, CBZ will pursue an open innovation strategy where we work with and through these fintech companies in areas such as cash and mobile wallets.
Nevertheless, the Head of CBZ recognises the potential risks that will arise from these innovations. However, he stressed that the Reserve Bank of Zimbabwe (RBZ) will mitigate these risks in its fintech sandbox which regulates banks’ participation in these cutting-edge innovations and technologies. This allows you to pre-test solutions, identify potential risks and develop risk mitigation measures before solutions are released to a wider market, Holtzman said. This makes CBZ one of the first financial institutions in Zimbabwe to officially declare its intention to accept cryptocurrencies. The announcement comes as RBZ opens up to fintechs. For example, in its monetary policy statement of 18… February 2021, the central bank stated that the regulatory sandbox would come into effect on 1. March 2021. At the time, however, RBZ said cryptocurrencies would be excluded from the sandbox. It is still unclear how the CBZ plans to use cryptocurrencies if the central bank’s statement says they are not allowed. What do you think of the CBZ’s plan to use cryptocurrencies? Tell us what you think in the comments below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.In an effort to look at methods on how to leverage cryptocurrencies, a Central Bank of Zimbabwe official, Norman Tawonezvi, said that the country’s largest bank, the Commercial Bank of Zimbabwe, was studying the possibility of using bitcoin and the blockchain to transfer funds. Tawonezvi added that CBZ is studying these methods to improve its efficiency and provide cheaper and faster services to its customers.. Read more about bitcoin price and let us know what you think.
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