Zimbabwe opens up to cryptocurrencies
While some countries are trying to limit the impact of cryptocurrencies on their financial systems, other states are doing the opposite, believing that cryptocurrencies will help them develop. Zimbabwe, in particular, is pursuing such a policy.
The country's Finance Minister Mthuli Ncube visited the renowned DMCC cryptocurrency center in Dubai a few days ago, where he was inspired by decisions to reduce the cost of transferring funds. Ncube said he liked the proposed solutions for cryptocurrencies and methods to reduce monetary transaction fees for diasporas based in other countries.
According to the World Bank, the Zimbabwean diaspora spends at least $90 million on remittance fees. Note that this is not the first time the finance minister has supported cryptocurrency. Several years ago, Ncube urged citizens to invest in innovations such as Bitcoin and infrastructure development.
According to the World Bank, the Zimbabwean diaspora spends at least $90 million on remittance fees. Note that this is not the first time the finance minister has supported cryptocurrency. Several years ago, Ncube urged citizens to invest in innovations such as Bitcoin and infrastructure development.
Zimbabwe opens up to cryptocurrencies
Such a statement by the finance minister was viewed with some bewilderment at the time. In particular, Victor Mapunga, CEO of Flexfintx, reminded the minister that Zimbabwe already has a large number of blockchain and crypto startups. He urged to work with local companies in this direction.
This stance was understood by other members of the cryptocurrency community, and there were opinions that the Zimbabwean authorities should do even more to promote cryptocurrency-related businesses. This is especially important for the country, given that Zimbabwe has been hit hardest by inflation.
According to the CATO Institute, the country's inflation rate reached 50 percent per month in 2007 and dropped to 89.7 sextillion per year in November 2008. High inflation rates still persist in Zimbabwe, and cryptocurrencies are the best asset to store value in a country prone to such inflation.
According to the CATO Institute, the country's inflation rate reached 50 percent per month in 2007 and dropped to 89.7 sextillion per year in November 2008. High inflation rates still persist in Zimbabwe, and cryptocurrencies are the best asset to store value in a country prone to such inflation.
However, not everyone thinks cryptocurrencies are a good asset. In particular, Senator D. Sayeo believes that when banking structures stop manipulating the exchange rate, maybe then the Reserve Bank of Zimbabwe will be able to consider cryptocurrency as a useful asset. In the meantime, the risks are too high.
Let's see if the Zimbabwean finance minister can accelerate the introduction of cryptocurrencies into the financial system.
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