Uncertain economic conditions spur a Bitcoin frenzy in Zimbabwe

As the popular saying goes, “When one door closes, another opens”, Zimbabweans are looking towards the Bitcoin door as their ultimate saving grace. The country’s ban on the use of foreign currencies, record-high inflation rate, and indecisive government policies have caused the public to turn to a decentralized currency form, like Bitcoin, as a means to shield their income. 

According to a video released by VoaZimbabwe, people of Zimbabwe are now demanding Bitcoin’s mainstream adoption through an increased number of purchases, observed during the last few weeks. People want to preserve their wealth in such a fashion that it has some significance outside of Zimbabwe.

What caused the Bitcoin frenzy?

Earlier this year, the Zimbabwe government caused a stir in the country’s already dismal state of the economy by announcing a nationwide ban on foreign currency trading, including the US dollar. Amidst the chaos, Zimbabwe Dollar was relaunched in the hopes of helping the country recuperate from the setback.

In 2018, the Reserve Bank of Zimbabwe (RBZ) proposed discontinuation of all crypto-related businesses and shut down the country’s doors to Bitcoin.

Subsequent to the disputable ban laid by RBZ, several crypto companies decided to put up a fight against order claiming that such decisions are beyond the scope of RBZ’s authority. Later, during a court hearing in which the central bank authorities failed to show up, the government decided to reprimand. 

No alternative to Bitcoin?

While Zimbabwe Dollar has proved itself to be worthless outside the country, buying currencies like the US Dollar or Pound is not an option either. In such a state of dilemma, there seems to be no alternative to Zimbabweans but to buy Bitcoins as a store of value.

The government authorities, on the other hand, are encouraging people to be extremely circumspect while trading in cryptocurrencies, in the wake of the alarming increase in crypto scams and hacks. 

Despite the warning, it is evident that the Zimbabweans are choosing bigger risks and bigger benefits over an uncertain future.