- The Reserve Bank of Zimbabwe developed guidance and standards on controlled testing of technologies
- The Guideline platform was established to provide a regulatory environment that is conducive to the development of Fintech
- Digital currency is any currency, money or money-like asset that is primarily managed, stored or exchanged on digital systems, especially over the internet.
Financial technology has managed to uplift the economic sector of Zimbabwe by helping new start-ups to reveal their new innovative ideas to the world. The Reserve Bank of Zimbabwe also intervened in this programme to support new economic idealist to reveal their new innovative products and services. The Reserve Bank of Zimbabwe developed guidance and standards on controlled testing of technologies with relevance for financial services market development.
In the process of guiding new participants in the programme, the Fintech Regulatory Sandbox Guidelines was introduced to play the part. The Guideline platform was established to provide a regulatory environment that is conducive to the development of Fintech. The Sandbox contains regulations that will enable participating institutions to test their products, services or solutions under specific guidelines. In other words, the purpose of the Fintech Regulatory Sandbox Guidelines provides guidance and requirements for participants to operate in the Regulatory Sandbox.
Furthermore, some certain products and services are eligible for Sandbox testing, however, some other products and services are non-eligible. Eligible products include:
• Automatic investment plans (AIP), is an investment plan that allows investors to contribute money to an investment account at regular intervals to be invested in a pre-set strategy or portfolio.
• Mobile money services, these services allow users to store, send and receive money using their mobile phones for example Ecocash and My Cash.
• Marketplace lending, this type of service uses online platforms to connect borrowers with investors willing to offer loans.
• Regulatory technology products, this is a new technology that uses the information to enhance regulatory processes.
• Equity crowdfunding is this online offering of private company securities to a group of people for investment and therefore it is part of the capital markets.
• Cybersecurity products, this products refers to a body of technologies, processes and practices designed to protect networks, devices, programs and data from attack, damage or unauthorised access
• Digital Identification services, this is a set of validated digital attributes and credentials for the digital world, similar to a person’s identity for the real world. It can include attributes such as unique identity number, social security number name place and date of birth.
However, there is also a list of products and services that are non-eligible for Sandbox testing which include:
• Cryptocurrency is a digital or virtual currency, that is secured by cryptography, which is nearly impossible to counterfeit or double-spend e.g. Bitcoin and litecoin.
• Digital currency is any currency, money or money-like asset that is primarily managed, stored or exchanged on digital systems, especially over the internet.
However, although Digital currency is labelled an ineligible product to be part of the Sandbox products, one can argue that it played a major role in helping the people of Bahamas. The Sand Doller, the world’s first central bank currency became the main transacting mode after the Island was affected by Hurricane Dorian, the most powerful storm to ever strike the island nation. It became infeasible for individuals to access their bank account and ATMs. The sand dollar managed to resuscitate the calamity because it can be operated via mobile phones