Bitcoin Price Doubles in Zimbabwe, Could Replace the Country’s Banking System

Bitcoin Price Doubles in Zimbabwe, a country that has struggled with ongoing issues with its banking system. As the fiat currency system in Zimbabwe currency becomes questionable in nature, there is a potential that the bitcoin might replace much of the banking system in the country. This in turn has led to the bitcoin price doubling in the country.

The bitcoin value has reached inflation of around 100 percent in recent time. It is trading for around $13,000 per coin in Zimbabwe. This is close to twice the total value that the bitcoin is trading for on cryptocurrency exchanges throughout much of the world.

The reason for the inflation comes as the demand for the bitcoin has gone to an all-time high in Zimbabwe. This is due to worries about the banking system in the country collapsing. There are already limits in the country over how different currency functions can be used.

Banking Worries

People in Zimbabwe have been flocking to the bitcoin as President Robert Mugabe has been heavily controlling much of the country’s economy. This includes his moves to work with other fiat currency options in the country, a control that has not done much to ease issues with the nation’s economy. Mugabe’s decision to fire deputy Emmerson Mnangagwa is especially noteworthy as it suggests Mugabe wants more control over the government.

This comes as the currency situation in the country has been struggling. The country uses bond notes that link to the American dollar. But the country has also been using many other currencies including the South Africa rand, the Botswana pula, the British pound and the Euro. This comes as the Zimbabwe dollar had died out due to hyperinflation in the country.

As a result, the bitcoin has grown to a five-digit value in Zimbabwe. The currency trends in the country do not show any signs of slowing down either as it continues to be vital in the region.

Possible Replacement

The bitcoin could be a possible replacement for the banking system in Zimbabwe as issues over the fiat currency situation continue to develop. The lack of government regulation for the bitcoin could make it an ideal option for handling money in the country.

This especially comes as many credit card groups are no longer working in Zimbabwe without extreme limitations. Banks in the country have announced that Visa debit cards are no longer useful for international payments without making arrangements or pre-funding such payments with hard currencies. Also, Econet Wireless is no longer taking foreign payments from the MasterCard EcoCash mobile debit card.

Analysts will be looking into the situation in Zimbabwe to see what might happen with the bitcoin. With the banking system at risk of breaking down in the country and President Mugabe showing no signs of stopping, there is a real potential the bitcoin would become more prominent. This would cause the country to become a greater case study in terms of how the digital currency may work throughout an entire land.

 

Advertisement

Click To Join Our Community Telegram Group