Developing a crypto currency regulatory model: The case of Zimbabwe

Abstract

. The rise of crypto currency has prompted numerous calls for financial regulation. The study's objective was to identify regulatory concerns and their impact on regulation of crypto currency usage in Zimbabwe. A probability sampling method was used to pick 450 respondents from banks and regulatory institutions. Structured questionnaires were used to obtain data from the selected respondents. The primary elements impacting crypto currency regulation were identified using an ordinal logistic regression modelling technique. Money laundering, financial stability, consumer protection, monetary policy and tax evasion were found to be regulatory concerns that influences regulation of crypto currency usage in Zimbabwe. Based on these findings the author presented proposals such as incorporating Central Bank Digital Currency (CBDC) into applicable legislation and reaping the benefits of crypto currency through the issuance of CBDC.

Keywords

• crypto currency
• regulation
• central bank digital currency (cbdc)
• reserve bank of zimbabwe (rbz)