Emerging countries are particularly fond of crypto-currencies, as they are useful in everyday economic life. Zimbabwe, ravaged by hyperinflation of its fiat currency, is thus fully aware of the incredible opportunity that Bitcoin (BTC) offers.
Bitcoin: The way out of decades of hyperinflation?
After El Salvador adopted Bitcoin as its legal tender on September 7, 2021, all countries whose state-owned currencies are struggling to keep from depreciating sharply due to inflation have seen a new hope for finally stabilizing their economies.
From Latin America to Africa, the idea of Bitcoin as a national currency not only no longer shocks anyone, but is even being closely studied by governments. This is the case with the authorities in Zimbabwe, who unfortunately know all too well the disaster of a collapsing fiat currency due to a lack of trust in its issuing state.
According to a publication of the local newspaper Bulawayo, the Zimbabwean government is currently studying the possibility of adopting cryptocurrency as a legal tender in the country. Bitcoin is clearly mentioned as an example in the article.
Consultations on track, before an announcement on Bitcoin?
To corroborate its claim, the publication specifically quotes Charles Wekwete, head of the Technology unit of the Zimbabwean e-government, who gave the following speech at a technology summit:
“The government has put in place a mechanism to gather views from different sectors of society, in order to formulate a regulatory policy [on crypto-assets]. (…) Sooner or later, the government will make official announcements, but we are not there yet, although the consultation process on the subject is already underway.”
Deemed essential to help develop the country’s digital economy, crypto-currencies are, however, considered still too unfamiliar to governments, according to the Zimbabwean leader.
This unfamiliarity generates fears about the risks of money laundering, which could result from the facilitation of cross-border transfers through cryptocurrencies. This explains this initial consultation time, especially with the private business sector, before any premature official announcement.
When you see that even the most powerful central banks on the planet can’t do anything about the inflation of their fiat currency, and that they are printing their money in a crazy way, you can understand why many eyes are turning to crypto-currencies. This is especially true for Bitcoin, with its fixed and limited supply of only 21 million units.
