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BoZ ponders introducing digital currency

THE Bank of Zambia (BoZ) is exploring ways of introducing and implementing digital currencies in the country, while putting up measures to curb cyber security.

The central bank is interacting with others on how they have done it but will not rush in implementing it in the country, said BoZ Governor Denny Kalyalya.

“We have to do a lot more before the digital currency can come to being in the country,” he said at the launch of the sixth Pricewatercoppers banking and non-bank industry survey yesterday in Lusaka.

He also said the central bank was putting in place measures to address the cyber security situation. Dr Kalyalya observed that this could also be done by financial institutions working hard on know your customer (KYC) to help people avoid being swindled.

He said cyber security issues had been worsened by how people interact with technology.

“Some people have created loopholes to scammers through their interaction with technology. The continued increase of cyber security threats is posing a challenge to the financial inclusion agenda,” Dr Kalyalya said.

Meanwhile, Dr Kalyalya said the worst days for the Zambian economy were overdriven by positive efforts in implementing fiscal measures.

This follows the getting of the International Monetary Fund (IMF) US$1.3 billion credit facility which shows the country’s commitment to revive the economy.

Dr Kalyalya also said this was supported by prudent execution of the national budget. And Pricewatercoppers country senior partner Andrew Chibuye said the outlook of the financial sector was positive supported the continued adoption of digital platforms among others.

Mr Chibuye said retail in 2025 and beyond would be revolutionary as the majority of products offered will be via digital channels.

And Bankers Association of Zambia executive committee member Paliwal Kuldip said the sector was ready to make the economy cashless through the promotion of the use of digital platforms.

Mr Kuldip said with the increased use of digital platforms cyber security risks had taken different shapes the channels are being controlled to address the challenge.

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