Zimbabwe’s economic disturbance has striked panic in the country, where social media stints, indicating the economic pressure zone bursting into a crisis, have sparked market panic and tested the resilience of the economy. Zimbabwe locals are buying Bitcoins to resist the economic turmoil. Bitcoin is being traded at $10,000 a unit as compared with its global average of ~$5,200, as per local trading platform Golix.io. Other cryptocurrencies such as Litecoin and Dash being traded at Golix are being traded at very high price as compared with global averages. Crytpos are surging at highest values in Zimbabwe as compared to rest of the world.
According to The National.ae, Bitcoins are not only being used by traders and buyers but also for local businesses with bills to pay. Bitcoin has supported the Zimbabwe’s attempt to defy the economic pressure and move toward in building a sustainable economy
In 2009, the Zimbabwean government abolished the Zimdollar (majorly because of its valueless-ness) and adopted the US dollar as fiat currency to counter hyperinflation. High consumption level in Zimbabwe which is unsupported by the local production, led to its high dependence on import. Unfortunately, this lack of domestic dependence also affected the currency because of its limited supply.
As stated by the Reserve Bank of Zimbabwe’s governor John Mangudya with a local publication,
“Yes, we import cash almost every week and we are now importing $10 million on a weekly basis. When we say we import cash, we say we import dollars because we said we want to continue using the dollar in this economy.”
As per the cryptcoinsnews, the central bank started issuing bond notes of value equivalent to U.S. dollars but foreign suppliers refused to accept them and some businesses charged a premium of up to 50% to accept them.
Are Zimbabweans turning towards cryptos as National Currency?
To evade the country’s crisis and lack of fiat currency, the locals are moving towards buying cryptocurrencies. According to cryptocoinmastery, high acceptance of Bitcoin is the key attribute of its price surge. Bitcoin can always be used irrespective Zimbabwean government plans.
according to a blog post, Zimbabwe locals has been able to save $35 per transaction through Bitcoin.
“This represents approximately $35 in savings per transaction compared to the $310 I previously used by channelling remittances through Money Gram. This method only requires moderate computer skills and is a good way to experiment with a very interesting technology.”
Can Bitcoins be adopted by other countries too?
According to an article in coindesk, Lawmakers in Australia are pushing for bitcoin as an official currency. This effort is led by Liberal Senator Jane Hume and Labor Senator Sam Dastyari, who are pushing the argument for Australia to be more proactive about cryptocurrencies and blockchain.
Australian senators have created a group, Bipartisan Parliamentary Friends of Blockchain group, to encourage the adoption of bitcoin and consider creating its own cryptocurrency as per an article in Futurism.