Is Bitcoin the Answer to Zimbabwe’s Problems?

• In an effort to try and shrink hyperinflation, the nation of Zimbabwe introduced the next generation Zimbabwe dollars.
• Conditions are just right for the introduction of the most powerful cryptocurrency, bitcoin.
• L.S.M. Kabweza believes that bitcoin might be his country’s saviour…

In an effort to try and shrink the impact of hyperinflation, the nation of Zimbabwe introduced the next generation Zimbabwe dollars. The country’s government is planning to disperse a billion Zimbabwean dollars over the next six months and recently released its brand new currency earlier this week on Tuesday.

As per CCN:

“Citizens lined up for hours outside banks to receive the new currency notes only to go home frustrated. According to Reuters, banks prohibited withdrawals of over 300 Zimbabwe dollars ($20) per week. In a country where inflation has hit 380%, 300 Zimbabwe dollars is not even enough to buy a bag of fertilizer.”

It seems that it could be conditions are just right for the introduction of the most powerful cryptocurrency, bitcoin. 

Saving Zimbabwe

L.S.M. Kabweza, a writer and native Zimbabwean, believes that bitcoin might be his country’s saviour…

Despite the volatility of the leading cryptocurrency, it is a better alternative than any money controlled by the government. 

Kabweza said:

“Bitcoin is notoriously volatile, but nowhere close to the unpredictable nature of Zimbabwe’s current government, perceived or real.”

Kabweza continued:

“The more important thing, however, is that reliance on bitcoin helps with Zimbabwe’s trust problem… A likely scenario that would result is that some people would begin to trust keeping their money in Bitcoin wallets than in bond notes that a government can theoretically print more of… if more people have their money stored in bitcoin wallets, businesses would see reason to start accepting these Bitcoin as payment which would increase liquidity.”

It will be interesting to see how this situation plays out in Zimbabwe. For more news on this and other crypto updates, keep it with CryptoDaily!