Zimbabwe may soon adopt cryptocurrency as legal cash, with reports saying the nation has begun investigating the use of digital currency as a legal payment facility.
According to a top official, the nation is exploring using Bitcoin (BTC) as a legal payment option to assist fulfill the rising demand from the broader populace.
According to retired Brigadier Colonel Charles Wekwete, permanent secretary and head of the office of the president and cabinet’s e-government technology section, conversations were already underway with enterprises in the nation.
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He has stated the reasons why Zimbabwe would want to control the business due to a variety of difficulties and downsides. Among the reasons cited are unregistered cross-border transfers, money externalization, money laundering, and the possibility of ill-gotten funds funding illegal operations.
The need to establish legislation was also to safeguard consumers while improving and stabilizing the country’s financial destiny, according to Wekwete. The southeastern African country’s currency underwent hyperinflation, with the repercussions still being seen today.
It is thus not surprising that many in the nation want to see bitcoin adopted in the area. With more young Zimbabweans embracing the gambling industry and warming up to iGaming activities such sports betting and casino games, many are starting to call for the digital asset to be used for other services and products available in the country. Despite the instability, many believe that it is independent from the country’s fiat currency (Zimbabwean dollar), enabling them to avoid the hyperinflation concerns that continue to plague the nation.
Aside from being able to better protect themselves from the hyperinflation troubles that have afflicted the Zimbabwean currency, citizens of the nation have reaped several additional advantages. Anonymity allows bettors to secure their gains and avoid paying taxes when putting funds into their bank accounts. With the present financial crisis in the African nation, this will be highly crucial to them.
Work to be done
However, Zimbabwe has yet to make any big announcements on the prospective usage of crypto, and is thought to be still in the consultation stage. Because the administration has chosen to seek advice from many industries on whether digital money may be used as legal cash.
As part of its National Development Strategy 1 (NDS1), the government has approved a strategy to combine industry and government initiatives to address the digital economy.
Zimbabwe, like El Salvador, might prove that Africa can lead cryptocurrencies.
While utilizing Bitcoin as legal cash is still a long way off, other nations have either looked into or completely adopted crypto as a form of acceptable payment. El Salvador is now the most famous, since they have a Bitcoin Law that permits it to be utilized.
Indeed, Africa might teach the rest of the world that bitcoin can be used as legal cash. Between July 2020 and June 2021, the market surged over 1,200 percent, with significant penetration in nations including Kenya, South Africa, Nigeria, and Tanzania.
This makes Africa the world’s third-fastest growing crypto economy, as individuals hunt for alternatives and resort to digital currency to bypass bank and exchange limitations.