Bitcoin in zimbabwe

financial institutions have topartner a bank for it to operate. Considering that "many Zimbabweans are making the conscious decision to avoid banks especially for savings it is prudent to actively lobby for the removal of this particular provision of the law to enable full establishment of Bitcoin as a payment system in the country. Relevance of the Exchange Control Regulations and the Reserve Bank Act If on paper the Bitcoin system can be adopted in Zimbabwe as discussed above the other pertinent issue is whether the currency unit bitcoins can be recognised as a currency in Zimbabwe. In terms of s40of the Reserve Bank Act the Central Bank is authorised to issue cumency. This is no longer applicable as the bank is not making its own cumency as previously stated. The key aspect in Zimbabwe will be how bitcoins will be treated i.e. will they be seen as a currency or not. In terms of the Exchange Control Regulations foreign currency is defined 43 as a foreign currency note or coin. A foreign currency document means a bill of exchange, traveller's cheque, letter of credit or other document which is issued in or outside Zimbabwe to enable the person to whom it is issued to obtain directly or indirectly any foreign currency note or coin from some other person on the credit of the person issuing the document. A foreign currency note or coin means any currency other than Zimbabwean currency which is legal tender in a country other than Zimbabwe. To the extent that bitcoins have been recognised as legal tender in certain jurisdictions such as Germany 4 and with guidance from Brazik it can be argued that for purposes of Zimbabwe bitcoins are foreign cumency and as such their use and operation should be permissible at law. The Reserve Bank will however have to make some formal statement of recognition to enable unhindered use in the nation.