Africa has been slow to respond to the cryptocurrency industry. Many of the local governments have shot down claims that it could harness their economy and its individuals. They have refuted digital currencies in fear that their lack of regulation will cast a net over residents and make them succumb to scams and fraud. Although there is a chance that locals who are financially uneducated may fall into these criminal pitfalls, there is still the underlying feeling that cryptocurrency could help the economies of African countries, and especially Zimbabwe. So, how could cryptocurrency aid Zimbabwe’s struggling economy and should locals be reaching for financial publications from the Financial Gazette and a secure bitcoin Luno wallet right now? Let’s find out.
Why is Zimbabwe’s Economy Struggling?
It is no secret that Zimbabwe has a struggling economy. The government has always insisted that the economy is shrinking because of sanctions that are in place against their nation. Notably, President Trump has recently renewed sanctions against the country because the US hierarchy feels it poses a threat to the US’s foreign policy. This has occurred despite other African leaders asking for the sanctions to be lifted and help Zimbabwe recover from its economic turmoil. Specifically, mortality rates have increased by striking medical staff, fuel prices have surged and basic commodities for daily living have become almost unaffordable for most Zimbabwe households.
Zimbabwe’s Lost Cryptocurrency Plan
Towards the back end of 2018, Zimbabwe officials appointed a new finance minister by the name of Mthuli Ncube. Ncube is a fan of cryptocurrencies and initially devised a program that could rescue the economy by utilising digital currencies. The plan in question was to resemble the work of Switzerland’s central bank. They too had helped their own economy recover through cryptocurrency.
So, Why Hasn’t Zimbabwe’s Economy Improved?
The bottom line is that the economy remains incredibly unstable because the cryptocurrency program devised by Ncube has not been implemented. Speculation remains unto why the finance minister has not been able to attempt to resuscitate the economy with his initial plan. Skeptics may believe he has gotten cold feet on the novel idea, while others point to the suits and ties around him. The minister is surrounded by officials who d not understand or believe in the potential of cryptocurrencies, which may have blocked him from putting his Swiss model in place.
Can Cryptocurrency Rescue Zimbabwe?
Cryptocurrency could rescue Zimbabwe from its economic troubles. Just by looking at some other African countries that have regulated its use, it is evident that embracing it can do more good than harm. At the moment, there are many Zimbabweans who are experts at mining and using cryptocurrency. These people are paying taxes at home and in other countries. All of these tax payments could be somewhat going into the pockets of the Zimbabwean Government but instead, they are missing out.
The power of cryptocurrency to change the way we live has never been in questions. Its power to change the standard of living is something that exists but not realised by all, including top officials in Zimbabwe. Hopefully, they will take notice of neighbouring countries and welcome digital currencies with open arms, sooner rather than later.