Another country may soon launch its own digital currency. The central bank of Zambia is seriously considering this idea. At the same time, local authorities have always been concerned about cryptocurrencies and other digital assets. Earlier, the regulator stressed that it did not recognize cryptocurrencies as legal tender in Zambia. Yet, the development of the central bank digital currency is seen as a wise step aimed at reinforcing the country’s financial system. “The results of the research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia,” Nkatya Kabwe, acting assistant director of communications at the regulator, explained. At the same time, speaking about crypto, he warned that “people who want to deal with them should have a clear understanding of all the risks that come with such payment and investment instruments.” Unlike cryptocurrencies, central bank digital currencies are pegged to fiat money. Zambia may soon join such nations as China, the US, Israel, Ghana, the Bahamas, and Nigeria that are going to or have already issued a digital version of their national currencies. The same is true about Russia. Its central bank plans to test the digital ruble prototype this year. If successful, it may become the third official means of payment in the country.
