Technology has changed many things in our lives. From the way we communicate, to the way we learn, and now, with Bitcoin, a digital currency, technology has changed the way people transact through a purely digital payment system.
Bitcoin is the leading cryptocurrency in the world having soured to over US$ 17,000. But the Reserve Bank of Zimbabwe (RBZ) has branded the cryptocurrency illegal in Zimbabwe, and it is not the only Central Bank in the world not to regulate Bitcoin. But they are researching on the cryptocurrency that is making waves in the Financial World across the globe with many fears that it will tank and cause another Global Economic Crisis.
By Pearson Mbendera
“Research is currently being undertaken to ascertain the challenges and risks associated with these particular products and until we have actually established and come up with a legal and regulatory framework for them, it will not be allowed,” RBZ director and registrar of banking institutions, Norman Mataruka said.
Satoshi Nakamoto, the creator of Bitcoin created it in a way that it wouldn’t need the authority of a central Bank.
People in Zimbabwe don’t have a lot of faith with the banking sector and particularly RBZ especially after introducing the Bond notes that were supposed to address cash shortages in the country but only made the situation worse.
With so much distrust of the financial system, can an independent digital currency help solve the economic woes of a country like Zimbabwe?
The adoption of plastic money in Zimbabwe has been a long process that is still yet to be fully accepted. Considering our economic problems and where we are coming from, one can understand why.
While one Bitcoin will cost an arm and a leg for most people in Zimbabwe, it can be further broken down into smaller parts like the Satoshi and the millibitcoin making many Zimbabweans virtually able to buy the .
Foreign currency has been a major problem in Zimbabwe and it has affected the economy in a lot of ways and Bitcoin may just help solve those issues.
Maybe some freedom from RBZ is what we want as far as financial matters are concerned. That way, their change in policy may not affect us the same way the introduction of the multi-currency system affected people who had their banks stocked with the Zimbabwe Dollar. And now, many people fear the same of Bond Notes.
Cryptocurrency surely has its own drawbacks. Lets see how Bitcoin will fare in the coming year and maybe we can start talking about local cryptocurrency. With the way things are going, our own digital currency may be the way to go.