One of Zimbabwe’s largest financial institutions, CBZ Holdings, says it is “considering ways to leverage cryptocurrency and other emerging digital innovations.” According to Mark Holtzman, president of the financial institution, CBZ is “open-minded about new innovations, as they can open up new opportunities in the future.”
Innovations are opening new markets
Speaking in The interview Along with a local publication, Holtzman also acknowledged that innovations such as “cryptocurrency, or more broadly blockchain, fintech, bigtech and techfin” are all serving “specific gaps”. Disclosing his organization’s stance on such innovations, the chairman said:
Our view is that these innovations have the potential to strengthen the way we do business, the way we serve our customers, as well as open up new market opportunities.
Holtzman says such opportunities can be pursued “through collaboration and collaboration with similar fintechs.” As a result, the chairman states that CBZ will “adopt an open innovation strategy in which we work with and through these fintechs in areas such as mobile money and mobile wallets.”
Nevertheless, the CBZ boss acknowledges the potential risks arising as a result of adopting these innovations. Nevertheless, he stressed that the Reserve Bank of Zimbabwe (RBZ )’s fintech regulatory sandbox — which guides banks’ involvement in these innovations and advanced technologies — would limit such risks.
Holtzman explained, “It allows pre-testing of solutions, detecting potential risks, and crafting risk mitigators before launching solutions to a wider market.”
With this revelation, CBZ became one of Zimbabwe’s first financial institutions, which formally indicated its intention to adopt cryptocurrency. This announcement occurs when the RBZ heats up to fintech. For example, on February 18, 2021, Monetary policy statement, The central bank revealed that the regulatory sandbox would begin on March 1, 2021.
However, at that time RBZ stated that cryptocurrency would be Withdrawn From a sandbox. It is unclear why these are disqualified when the central bank statement states that CBZ plans to take advantage of cryptocurrency.
What are your thoughts on CBZ’s plan to leverage cryptocurrency? Tell us what you think in the comments section below.
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