Zimbabwe U-Turns on Crypto, Looking to Stabilize Local Economy

The Reserve Bank of Zimbabwe, the country’s central bank, is considering a regulatory sandbox for crypto companies in an apparent change from its previous anti-cryptocurrency stance. The proposed sandbox is reportedly part of a broader agenda by authorities in Zimbabwe to revamp the nation’s financial sector, which has seen massive hyperinflation since 2007.

Meanwhile, Zimbabwe’s government is also partnering with Apollo Fintech to develop a gold-backed cryptocurrency for the country. The collaboration is expected to allow Zimbabweans to have access to the Apollo wallet for digital-currency payments.

Despite the government’s 2018 crypto ban, peer-to-peer trading of cryptocurrencies continues to thrive in Zimbabwe, as the country’s faltering monetary policies seemingly push investors toward digital currencies. In mid-2019, cryptomania in Zimbabwe reached such a fever pitch that false rumors about the price of Bitcoin (BTC) reaching a 600% premium began to spread.

The RBZ’s…