Zimbabwe Stock Exchange (ZSE) Intends to Adopt A Blockchain Product, Awaiting Legal Clarity
Justin Bgoni, the chief executive of Zimbabwe Stock Exchange (ZSE) revealed that ZSE is looking to experiment with blockchain technology provided there is a regulatory framework around it.
Bgoni conversed about advancing blockchain-based products and services such as real estate investment trust securities (REITS), mineral commodities exchange and exchange-traded funds (ETFs) as key to expanding the market into a vibrant exchange.
“It’s something (Blockchain technology) we need to look into, though not now, the technology is very good. Each transaction, you can see who owns it so it is easy to audit it that is why people like it, is easy to verify it, it is transparent and takes away fraud, that part of the technology you can see everything and it makes sense, it is definitely an area that ZSE can explore,”
Notably, last month, Jamaica Stock Exchange stated that it was beginning a limited pilot to trade bitcoin (BTC) and ethereum (ETH). The move by the JSE is the latest in a series of announcements that aim to open the doors to crypto-currency investment. Just a week later Nasdaq-based Bitcoin products made an appearance on the second largest stock exchange but turn out TD Ameritrade might be testing Bitcoin trading on the exchange which if comes true will bring in a new wave of retail and institutional investors.
Bgoni hinted that there was no clarity yet on regulations governing the trade of blockchain-based virtual currencies in the country. He stated:
“Then there is the money side to blockchain technology. This is a bit difficult, in terms of regulation, we are not yet clear on this and we do not want to do something where regulation is not clear as an exchange. But the technology side is very good.”
Kenya’s Central Depository and Settlement Corporation (CDSC) Kenya chief executive Rose Mlambo, when asked about the Blockchain technology in Africa said:
“Blockchain is the next big step in technology on our capital markets as Africa. It is good and enhances the security of your investment, every time you do a transaction it is recorded everywhere and cannot be altered at any stage. This is what investors want to boost their confidence.”