One of Zimbabweâ€™s biggest financial institutions, CBZ Holdings says it is looking at ways it could â€œleverage cryptocurrencies and other emerging digital innovations.â€ According to the financial institutionâ€™s chairperson, Marc Holtzman, CBZ â€œis open-minded about new innovations, as these could open up new opportunities going forward.â€
Innovations Opening up New Markets
Speaking in an interview with a local publication, Holtzman also acknowledges that innovations such as â€œcryptocurrencies, or rather blockchain more broadly, fintechs, bigtechs and techfinsâ€ are all serving â€œspecific gaps.â€ Revealing his organizationâ€™s stance on such innovations, the chairman said:
Holtzman adds that such opportunities â€œcan be pursued through collaboration and cooperation with the same fintechs.â€ Consequently, the chairperson says CBZ will be embracing â€œan open innovation strategy in which we work with and through these fintechs in areas such as mobile money and mobile wallets.â€
Nevertheless, the CBZ boss does acknowledge the potential risks that will arise as a result of embracing these innovations. Still, he insists the Reserve Bank of Zimbabwe (RBZ)â€™s fintech regulatory sandboxâ€”which guides banksâ€™ participation in these innovations and advanced technologiesâ€”will limit such risks.
â€œThis allows for prior testing of solutions, detection of potential risks, and crafting of risks mitigants before solutions are launched to the wider market,â€ explained Holtzman.
With this revelation, CBZ becomes one of the first financial institutions in Zimbabwe to formally signal an intention to embrace cryptocurrencies. This announcement comes as the RBZ warms up to fintech. For instance, in its February 18, 2021, monetary policy statement, the central bank revealed that the regulatory sandbox would commence on March 1, 2021.
However, at that time the RBZ said cryptocurrencies would be excluded from a sandbox. It remains unclear how CBZ plans to leverage cryptocurrencies when the central bank statement says these are ineligible.
What are your thoughts on CBZâ€™s plan to leverage cryptocurrencies? Tell us what you think in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.