Zimbabwe may be the next country to embrace Bitcoin as legal tender

Many investors are skeptical about bitcoin, citing its extreme volatility and frequent speculation. For the people of Zimbabwe, where a serious economic crisis has been ongoing for almost a year, Bitcoin has become more significant than traditional money, despite its drawbacks. However, Zimbabwe may be softening its policy on the cryptocurrency sector. Finance Minister Mthuli Ncube, supportive of cryptocurrencies, recently stated that the nation cannot ignore cryptocurrencies at this juncture.

The country’s government has undertaken note of the rising demand for cryptocurrencies among the citizenry. The problem of state regulation of the entire sector is now being addressed. According to local media, Charles Wekwete, permanent secretary and chairman of the Zimbabwe Electronic Government Infrastructure Development Department, revealed this at the Computer Society of Zimbabwe (CSZ) conference. Many governments, according to Wekwete, still do not comprehend cryptocurrencies and are dubious or opposed to them for fear of their being used for money laundering or financing illicit activities. However, several governments are eager to follow El Salvador’s lead and legalize bitcoin.

You won’t be able to pay with bitcoin

Taking into account the difficult situation with ongoing inflation in Zimbabwe, many see bitcoin as a fair financial counterpart. According to Simbarashe Machiridza, the Bitfinance cryptocurrency exchange’s compliance manager, using bitcoin is conceivable and legal, but it is not a fully legalized mode of payment. In other words, there is a chance you won’t be able to pay any for products or services with bitcoin. Furthermore, the price shown on individual Zimbabwean dollar notes has grown dramatically. It reached the point where 100 trillion dollar notes started to emerge. The primary cause was complicated hyperinflation that resulted in an inconceivable conversion rate for US dollars. An intriguing fact is that Zimbabwe’s national currency broke the Guinness record for the most zeros on a banknote. These banknotes were widely distributed in 2009, and collectors are speculating on them on eBay.

Developing legislative regulations for the cryptocurrency sector

Furthermore, recent statements and changes in government policy concerning cryptocurrencies may suggest a shift in the country’s financial strategy. According to Charles Wekwete, Zimbabwe’s government is in the consultative stage of developing legislative regulations for the cryptocurrency sector. However, although cryptos are becoming more popular, African governments do not share their citizens’ excitement. Some have even opted to outright prohibit cryptocurrencies. Nigeria, Kenya, Morocco, Algeria, and other countries have warned their citizens and financial institutions to avoid dealing with virtual currencies.

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Valentyna Bereza, Team bit4you.