How Cryptocurrency Can Revolutionize Zambia’s Economy: Insights from Yellow Card’s Karen Sifuniso

In a recent interview, Karen Sifuniso, SADC Region Head of Operations at Yellow Card, shared valuable insights into the current state of cryptocurrency in Zambia and how it can drive economic growth. While Zambia’s crypto adoption is still in its early stages compared to countries like South Africa, Kenya, and Nigeria, there’s growing interest and potential. Karen explained that the convergence of artificial intelligence (AI) and cryptocurrency could unlock new opportunities for innovation, making transactions faster, more secure, and boosting financial inclusion.

Can you give us an overview of the current state of cryptocurrency and digital assets in Zambia? How does Zambia’s crypto landscape compare to other African countries?

Adoption of digital assets is in its infancy stage in Zambia compared to other African countries like South Africa, Nigeria, and Kenya, where usage and adoption are mainstream. Regulation is gradually evolving, and institutions like the Central Bank of Zambia are cautiously observing developments and implementing measures such as Sandboxes to test fintech innovations.

With Zambia working on establishing an AI framework and the growing interest in cryptocurrency, how do you see these two technologies converging in the country?

The convergence of AI and cryptocurrency in Zambia opens up exciting opportunities for innovation and economic growth. By harnessing AI, financial institutions can make cryptocurrency transactions faster and more secure, while also using machine learning to spot fraud and enhance customer service. This combination can lead to smart contracts that automate various processes and help businesses comply with regulations. Additionally, AI can analyze data to reveal market trends, helping companies and policymakers make better decisions. 

Cryptocurrency is a “revolutionary technology.” In your view, what makes crypto a game-changer for Zambia’s economy and financial ecosystem?

Zambia has a growing demand for instant and affordable cross boarder payments and access to hard currency liquidity. In a country where traditional financial systems often fail to meet people’s needs. Digital assets offer an alternative that empowers individuals and businesses with affordable fast, and secure financial tools. 

When it comes to regulations, what are some key lessons Zambia can learn from other African countries that have successfully embraced cryptocurrency?

• Established clear licensing frameworks
• Educate consumers on risks and benefits of digital assets by collaborating with crypto firms to raise public awareness and promote financial literacy.
• Embrace stablecoins as a tool for financial inclusion especially in addressing high costs of remittances and cross border transactions
• Foster regional partnerships and harmonize regulation 

How do you see tailored regulations benefiting Zambia’s unique economy? What should the government’s priorities be in building a crypto-friendly regulatory environment? 

• Educate consumers on risks and benefits of digital assets by collaborating with crypto firms to raise public awareness and promote financial literacy.
• Embrace stablecoins as a tool for financial inclusion especially in addressing high costs of remittances and cross border transactions
• Foster regional partnerships and harmonize regulation. 
• Regulation also brings with it credibility to VASPs. This will drive an increase in adoption.

From an economic standpoint, how do you believe cryptocurrency can drive financial inclusion and economic diversification, particularly in Zambia’s underserved areas?

Cryptocurrency can play a big role in opening up financial opportunities for people in Zambia’s underserved areas. In regions where banks are hard to reach, cryptocurrencies give people a way to store and send money without needing a traditional bank account. This access helps small business owners and farmers connect with markets, secure funds, and manage payments more easily. Cryptocurrencies also make it cheaper and simpler to send money across borders, which is essential for families relying on remittances. 

What strategic initiatives is Yellow Card undertaking to support the growth of cryptocurrency adoption and economic development in Zambia?

Provision of an easy to use localized user interface with local payment integrations that is easily relatable and user-friendly to the local communities. 

YC has invested in financial literacy education and, provision of bit size information via various internal channels such as the app, email,pop up notifications and the Yellow Card Academy tailored to learners of varing knowledge levels. Most recently YC has provided blockchain training to engineers from various African backgrounds to support the growth of local talent.

Collaboration with regulatory bodies, provision of training on cryptocurrencies, blockchain monitoring for fraud and other illicit activities. Sharing regulatory initiatives implemented in other Markets with advanced regulatory frameworks as a means to support the building of a local regulatory framework. 

Looking forward, what are your thoughts on the potential synergy between AI and cryptocurrency in Zambia and the broader African continent? How can these technologies together shape Africa’s digital economy?

The combined power of AI and cryptocurrency has the potential to reshape Africa’s digital economy. By merging AI’s data insights with the secure, decentralized nature of cryptocurrency, these technologies can spark innovation across sectors.