Wednesday, August 10, 2022
Germany Latest News
  • Sports
  • USA
  • Asia
  • Health
  • Life Style
  • Tech
  • Science
  • Latin America
  • Africa
  • Europe
No Result
View All Result
Germany Latest News
Home Africa

Bitcoin at record levels in Zimbabwe

by The Editor
November 2, 2017
in Africa
0
Bitcoin at record levels in Zimbabwe
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Related posts

Nigeria: town mourns more than 50 people shot dead in church during mass

Nigeria: town mourns more than 50 people shot dead in church during mass

June 6, 2022
Mozambique confirms first wild poliovirus case in 30 years

Mozambique confirms first wild poliovirus case in 30 years

May 19, 2022

The price of the digital currency has soared beyond $10,000 over the past week on Harare-based trading platform Golix, almost double the rates on major international exchanges. "The price has been high for some time and it keeps going up," says Golix trade coordinator Yeukai Kusangaya. She expects soaring demand to drive the price even higher. Bitcoin is no longer a specialist curiosity in Zimbabwe. The virtual currency is in increasingly common usage, even accepted by businesses such as car dealers.A uniquely dysfunctional economy has created ideal conditions for the bitcoin surge.

Safe haven

Zimbabwe is undergoing a fresh currency crisis. President Robert Mugabe's administration addressed rampant hyperinflation in 2008 by ditching the Zimbabwean dollar and replacing it with US currency. But the southern African nation now faces an acute shortage of US dollars that has led to banks rationing withdrawals. The government has sought to make up the shortfall by issuing "bond notes" that it claims have equivalent value to the US dollar. But their value has dropped sharply on black market exchanges, leading to price inflation in stores, and they are not accepted by foreign suppliers. International trade is further complicated by strict capital controls, which have left importers searching for creative solutions — including digital currencies. "Bitcoin isn't subject to the central bank measures so it has become an alternative that importers are willing to pay a premium for," says Zimbabwean technology analyst Nigel Gambanga, pointing to a rise in businesses accepting the currency as payment. Bitcoin also offers investors a refuge from the faltering formal economy. "When confidence in national currencies wavers because of monetary policy or political uncertainty, bitcoin often behaves as a safe haven because the price is totally based on market discovery," says Nolan Bauerle, director of research at news site CoinDesk. "Some people find bitcoin useful because it is immune from the bright ideas of centralized authorities and their unintended consequences." A photo of a one hundred trillion dollar note, issued by Zimbabwe's central bank after hyperinflation. Zimbabwe now uses US currency. Even before the current crisis, Zimbabwe offered favorable conditions for bitcoin adoption. The country ranks third on the Bitcoin Market Potential Index, created by economic historian Dr. Garrick Hileman of the University of Cambridge, just behind the inflation-plagued economies of Argentina and Venezuela. The Index cites Zimbabwe's vast informal economy and history of financial crises as key factors that could drive bitcoin adoption. But while Zimbabwe's conditions are unique, digital currency experts believe it offers a valuable test case for the viability of bitcoin on a national scale, which could have global implications. "The underlying takeaway is that cryptocurrencies are here to stay and have a place in the world where monetary policy and fiat currencies cannot be trusted," says Saxo Bank analyst Kay Van-Petersen. "It's only a matter of time before an emerging or frontier market government decides to adopt a cryptocurrency as a foundation for credibility, transparency, accountability, and attraction of foreign capital." New research suggest Bitcoin adoption is more popular in countries that have suffered financial crises such as Zimbabwe and Venezuela (pictured).

Beat them or join them?

Should the bitcoin surge continue, the market could come under pressure from Mugabe's authoritarian government. "I wouldn't expect any tolerance from a country with a fragile financial system trying to maintain capital controls," says Hileman, suggesting the Zimbabwean government might follow China's example of banning bitcoin exchanges. But he questions whether the country has the resources to enforce such a ban, which could safeguard the currency's future. Another possibility is the government could embrace a thriving market and seek to take advantage of it. "If trade in bitcoin intensifies with no resolution to the country's currency woes, we could witness the central bank and government revise its position by taking on a more active role in cryptocurrency trading," says Gambanga. "At the very least, (by) recognizing cryptocurrencies through some form of regulation."The analyst even raises the prospect of bitcoin becoming an official currency of Zimbabwe. "The state has already taken extreme measures like banning the importation of fruits," he says. "So adding bitcoin to the country's multi-currency basket might not be so absurd."

Let's block ads! (Why?)

Original Article

CNN

Previous Post

Bitcoin at record levels in Zimbabwe

Next Post

Haley draws on her African visit when briefing Trump

Next Post
Haley draws on her African visit when briefing Trump

Haley draws on her African visit when briefing Trump

RECOMMENDED NEWS

Teen dies in an adulthood initiation ritual in Kenya

Teen dies in an adulthood initiation ritual in Kenya

4 years ago
EU to tighten screws on internet giants to remove terrorist content

EU to tighten screws on internet giants to remove terrorist content

4 years ago
Melbourne residents wake up to Sushant Singh billboards across city

Melbourne residents wake up to Sushant Singh billboards across city

2 years ago
From WWII to the White House: Bush’s remarkable life

From WWII to the White House: Bush’s remarkable life

4 years ago

FOLLOW US

  • 116 Followers
  • 86.7k Followers
  • 166k Subscribers

BROWSE BY CATEGORIES

  • Africa
  • Asia
  • Europe
  • Health
  • latest news
  • Latin America
  • Life Style
  • Science
  • Sports
  • Tech
  • Uncategorized
  • USA

BROWSE BY TOPICS

2018 League Bali United Beijing BlackBerry Brazil Budget Travel Bundesliga California Champions League Chelsea China Chopper Bike Coronavirus COVID COVID-19 Crime Doctor Terawan EU forces France French German GISAID Istana Negara Italy Lewandowski Lionel Messi Market Stories Mexico National Exam Nigeria Omicron Pakistan Police protect protests Qatar Russia slapstick South Africans TikTok Trump UK Ukraine Visit Bali
No Result
View All Result

Recent Posts

  • Dominican Republic environment minister shot dead in his office
  • France puts 18 on trial over alleged involvement in vast horsemeat scandal
  • North Korea fires ballistic missiles a day after US-South Korean naval drills
  • Nigeria: town mourns more than 50 people shot dead in church during mass
  • Death toll rises after train crash in Bavaria

Categories

  • Africa
  • Asia
  • Europe
  • Health
  • latest news
  • Latin America
  • Life Style
  • Science
  • Sports
  • Tech
  • Uncategorized
  • USA

Tags

2018 League Bali United Beijing BlackBerry Brazil Budget Travel Bundesliga California Champions League Chelsea China Chopper Bike Coronavirus COVID COVID-19 Crime Doctor Terawan EU forces France French German GISAID Istana Negara Italy Lewandowski Lionel Messi Market Stories Mexico National Exam Nigeria Omicron Pakistan Police protect protests Qatar Russia slapstick South Africans TikTok Trump UK Ukraine Visit Bali
Death toll rises after train crash in Bavaria
latest news

Death toll rises after train crash in Bavaria

by The Editor
June 6, 2022
0

Several people were killed and 40 more were injured on Friday when a regional passenger train derailed in the southern German...

Read more

Recent News

  • Dominican Republic environment minister shot dead in his office
  • France puts 18 on trial over alleged involvement in vast horsemeat scandal
  • North Korea fires ballistic missiles a day after US-South Korean naval drills

Category

  • Africa
  • Asia
  • Europe
  • Health
  • latest news
  • Latin America
  • Life Style
  • Science
  • Sports
  • Tech
  • Uncategorized
  • USA

Recent News

Dominican Republic environment minister shot dead in his office

Dominican Republic environment minister shot dead in his office

June 6, 2022
France puts 18 on trial over alleged involvement in vast horsemeat scandal

France puts 18 on trial over alleged involvement in vast horsemeat scandal

June 6, 2022
  • About
  • Advertise
  • Careers
  • Contact

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Sports
  • USA
  • Asia
  • Health
  • Life Style
  • Tech
  • Science
  • Latin America
  • Africa
  • Europe

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.