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Is Bitcoin the Ultimate Solution Zimbabwe’s galloping inflation had been longing for?

Zimbabwe’s drowning economy may have found its lifeguard in the face of Bitcoin

During the struggles of curbing Zimbabwe’s decade-long rising economic inflation, the country has taken a new turn. Recently on Tuesday, Zimbabwean Government introduced the new Zimbabwe currency known as the Zimbabwe dollar. The government tends to distribute about one billion Zimbabwe dollars over the course of the next 6 months.

However, the citizens of the country are not very pleased with the new initiative. This was the case when it was found out that they had been put under restricted weekly withdrawal of their allowance. Banks had declined any withdrawal request of above 300 Zimbabwe dollars per week. This makes 20 USD which might not even be enough to purchase a bag of fertilizer.

With Zimbabwe’s economic conditions, it is in dire need of a stable currency that would bear the black market influence and corruption. Moreover, the timing could not be better since mobile money transactions have been common. This is where cryptocurrency can be introduced; Bitcoin.

The Zimbabwe government mishandled their economy to the extent to bring it to an astonishing hyperinflation period in November 2008 where it reached 70.6 trillion percent. Thus in order to overpower the economic affair, the Government had to compromise on its nation’s currency. However, to say the least, this did lead to broken trust that has yet not been recovered despite the fact a decade has passed.

The Writer and Zimbabwean L.S.M. Kabweza acknowledged that the cryptocurrency is volatile but it still would be a better option than anything controlled by the Zimbabwean government.

It would not be wrong to judge the government as being unpredictable since the President increased the fuel prices to nearly double in order to get the hyperinflation under control. This affected businesses which had to alleviate prices in order to stay stable. Thus a downhill path of the economy was foreseen.

Luckily, Bitcoin may be the answer to this economic crisis. Kabweza explained that this dominant cryptocurrency would help to combat trust issues as he adds:

Some people would begin to trust keeping their money in Bitcoin wallets than in bond notes that a government can theoretically print more of… if more people have their money stored in bitcoin wallets, businesses would see reason to start accepting these Bitcoin as payment which would increase liquidity

Another pushing force towards the acceptance of bitcoin use is highlighted due to cheaper transaction costs of $0.44 to $0.57 comparative to cash-out services.

Apparently, bitcoin is the ultimate savior of the country’s drowning conditions. Frustrated citizens may as well just take advantage of this opportunity and shift to bitcoins instead while escaping the fiat system.

 

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Shahzaib Zafar

Electrical Engineer, Crypto enthusiast, a tech nerd and a developer with a keen interest in blockchain, writes daily articles about bitcoin and cryptocurrencies for blockpublisher.

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