The citizens of Zimbabwe are joyous once again as President Emmerson Mnangagwa’s government has successfully banned the utilization of the dollar for any form of settlement of traditional transactions.
Even though the economy of the country is still struggling really badly, Bitcoin is back once again on its radar. Bitcoin has been able to make its way back because of the re-emergence of the Zimbabwe dollar that was abandoned in 2009.
The government of Zimbabwe out rightly banned the use of currencies such as:
- The United States dollar
- South African Rand
- The British pound and any other foreign currency
This ban is because the government has been trying its best to avoid a re-dollarization of their economy. Plus, they have also tried to tame the rising pressure from the workers union.
The worker’s unions have been demanding that their salary payments should be paid in foreign Currencies. This financial policy measure was brought about on the 24th of June. However, it has been said to take strong effect all over huge formal businesses.
Zimbabwe’s Acceptance Of Bitcoin
Previously, the Reserve bank of Zimbabwe had banned all local banks from processing or thinking of executing transactions that involve Bitcoin. This ban was issued over a year ago.
Nonetheless, Cryptocurrency professionals in Zimbabwe have stated that person to person trade in Bitcoin is currently surging especially with the use of mobile money platform called EcoCash.
Actually, EcoCash is the major payment platform for traders of Bitcoin residing in Zimbabwe.
The Zimbabweans who are tech-savvy have been using Bitcoin and some other virtual currencies to connect foreign currency and even liquidity gaps that have frustrated the country for over ten years.
They have made use of virtual currencies so much that this Southern African country has been ranked as one of Africa’s most active market for digital currency transactions.
For now, both speculators and investors are turning straight ahead to Bitcoin. This is because it seems to be the most stable stir of value than their new Zimbabwe dollar; which is greatly overwhelmed by all forms of uncertainties.
Bitcoin’s price has greatly surged in their local currency. Plus, for the past week, crypto traders have been making use of some settlement platforms for their Bitcoin trades. These platforms include:
- Western Union
- Moneybookers, and;
The central bank of Zimbabwe has gone ahead to announce that free funds; entailing individual foreign currency and remittances accounts, will be very much accessible in hard currency and companies will not be enabled to withdraw the hard foreign currency.
To Wrap It Up
The Bitcoin traders available in the country are also taking hard cash deposits among their alternatives for payment.
The local Cryptocurrency professionals are even saying that Bitcoin trades are now on a person-to-person level. This is because there are no traditional exchanges to facilitate virtual currency trade and transactions.
All this simply implies that both facilitators and traders in Bitcoin trade are currently processing their transactions from over the counter.