Bitcoin Posts 600% Premium For Crypto Traders In Zimbabwe As Country’s Struggles Continue
Bitcoin, the world’s most popular coin, is currently gaining a very high ground in Zimbabwe. The sporadic rise in the value of bitcoin in the country is majorly due to the crackdown on foreign currencies, which gave the citizens little or no choice, but to turn to the virtual currency.
Bitcoin might be struggling to gain traction after its stellar rise to $14,000, but in the Southern African country, the coin is worth a whopping $76,000.
The Unprecedented Rise
The fall from grace of the Zimbabwean Dollar, after political tension in the country, affected their economy, led to most citizens seeking refuge in the USD and other foreign currencies. But recently, the Zimbabwean government of Emerson Mnangagwa ordered the citizens to stick to be newly packaged Zimbabwean currency and placed a ban on all foreign currencies in the country.
Disappointed with the new ruling, which is largely due to the value of the currency, the citizens turned to bitcoin, as it seems like the only way for them to dance around the ban and still manage to purchase desired goods and services.
The demand in the virtual currency skyrocketed, which led to the monstrous rise in the price of bitcoin in the country. The coin is currently trading at 600% premium, situation analysts said was caused by the country’s oppressive monetary policy.
The Steady Leap
The monstrous rise of the virtual currency in Zimbabwe is a reaction to an earlier action by the government.
The anger experienced throughout the country was unprecedented, as some of the citizens decided to totally boycott the Zimbabwean dollar, because of its extremely low value.
Zimbabwe banned cryptocurrency in the country in 2017, and the few operators were doing it illegally.
The country last exchange folded up in May 2018, with trading only occurring on P2P platforms such as Localbitcoins.
Analysts like the CEO of Azte.com Akin Fernandez forecasted that a persistence appetite for Bitcoin will increase, should the country also attempt to enforce their existing ban.
He was quoted on his verified Twitter handle to have said:
“Replace ‘USD’ with ‘Bitcoin’ and you get a glimpse into the future of not just Zimbabwe, but every country on earth. They are right to reject those measures wholesale. Money is a service that should be provided exclusively by the market, and never by the state.’’
The rise in the price of Bitcoin in Zimbabwe is a testament that cryptocurrency is gradually gaining ground in Africa. Bitcoinexchangeguide.com reported last year that a blockchain company Africa Master Blockchain launched New African Union Coin in South Africa.
The report revealed that the new asset would be used by telecoms firms as well as retail outlets all over the country.
Also, all the retailers who agreed to use the coin had to adjust and organize their fiscal networks. The world is going digital, and it will only be wise if Africa joins the trend and refuse to keep living in yesterday.