The citizens of Zimbabwe have resulted to cryptocurrency for their daily transactions has it offers a haven from the poor banking system and economic situation. The trend is growing amid the ban on cryptocurrency in the country.
The State Of Global Cryptocurrency Adoption
Cryptocurrency has become a haven for countries experiencing biting economic conditions. There has been a massive adoption of cryptocurrency in countries that are experiencing hyperinflation and economic sanctions.
Notably, the economic sanction on Turkey last month which impacted the value of the national currency and instigated inflation led Turkish citizens to troop into using cryptocurrencies in mass.
Equally, national cryptocurrency projects have also been trending, as Iran plans to tow the path of Venezuela, likewise Thailand among others.
The inherent advantages of cryptocurrency, especially in harsh economic condition has made the citizens of Zimbabwe embrace cryptocurrency also.
Cryptocurrency Adoption In Zimbabwe
A citizen of Zimbabwe named Josh paid his rent through Bitcoin in the country recently. Josh, a 23-year-old unemployed psychology graduate, who mines Bitcoin at a small scale stated that he had no cash with him, and fortunately, his landlord is an open-minded person. So he settled the landlord with 0.02281BTC an equivalent of $120 at the time.
Notable of large-scale adoption of cryptocurrency by the citizens of Zimbabwe is Study263. The platform was initially created to help Zimbabweans willing to study abroad make payments using cryptocurrencies with ease. This platform has gained the interest of thousands of users because of the shortage of foreign currency and the nonviability of the local currency to meet the demands of the citizens.
Tinashe Jani, Study263 co-founder, stated that not just Bitcoin, but the use of other alternative cryptocurrencies are available on the platform as well because they are cheaper, and faster. Especially in Zimbabwe’s situation where card payment does not work out for the country.
Jani further noted that the company had facilitated over 900 transactions with amounts ranging from $10 – $10,000+ since it commenced operations a year ago. The transaction includes payment of T.V. services among others which are received in Bitcoin and changed to Rand for further processing. The platform only charges 2% to 3% for such transactions, while the local bank charges 10%.
Why Cryptocurrency Thrive In Zimbabwe Amid Ban
Notably, the government of Zimbabwe banned cryptocurrency in May, making transactions in it illegal. Two exchanges, Golix and Styx24, aiding cryptocurrency transactions in the country were shut down in May.
Despite the ban, cryptocurrency adoption has increased because of the double problem of a shortage of foreign currency and the failure of surrogate currency known as a bond note.
Hyperinflation picking at 230 million percent in 2009 has made the country to give up on its national currency.
Shortage of currency has made mobile or card transactions expensive, and also people spend long hours on queues in banks. This has made cryptocurrency the best option for storage of value and safety from the unstable economy.