South Korea: is this the end of crypto exchanges?

After El Salvador declared Bitcoin as official currency, politicians from other developing countries are also publicly considering the benefits of crypto and blockchain. Zimbabwe’s finance minister is one of them.

Mthuli Ncube, Zimbabwe’s finance minister, has spoken favorably about blockchain technology and the adoption of Bitcoin and co. in his country. On the occasion of a visit to Dubai, he tweeted:

I visited the DMCC CRYPTO CENTRE in Dubai, a fascinating centre for cryptocurrency and payment solutions. I came across solutions that could lower remittance fees from the diaspora.

Mthuli Ncube

According to the World Bank, the African nation’s citizen:s receive $1.2 billion annually from abroad. This, according to media reports, involves up to US$90 million in transaction fees. In South America, the reduction of such fees is also an important argument for crypto adoption. Ncube had already called on his compatriots to invest in Bitcoin a few years ago.

Mixed response to Bitcoin statement

While parts of the Bitcoin community responded positively to the finance minister’s statement, there were also critical voices. Victor Mapunga, CEO of Zimbabwean crypto company FlexFinTx, reminded the minister that there are already companies operating in the industry in the country. According to him, policymakers would do better not to look to Dubai but to encourage local players.

Other voices continued to recognize Bitcoin and Co. as an effective means of compensation for the inflation-ridden Zimbabwean dollar. Whereby parallels to the situation in Latin American countries also emerge here. Former Zimbabwean senator Jopa SaYeyo, however, had a very different take on the inflation issue:

‘If banks stop manipulating the foreign exchange rate, the RBZ [Zimbabwe’s central bank; editor’s note] may consider cryptocurrencies. Otherwise, it will lead to a massive crash in the ZWL.

Meanwhile, displeasure is also stirring in El Salvador over the introduction of Bitcoin. Among other things, the criticism concerns President Bukele’s authoritarian style of government, which also came into play when the crypto law was passed.

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