More and more countries see the potential in cryptocurrencies. Whether as a means of payment or as a hedge against the loss of value – Bitcoin and Co. are increasingly being bought by large companies, banks and even the first states (see El Salvador). Now Zimbabwe’s finance minister, Mthuli Ncube, is also speaking out and calling on the population to invest in Bitcoin.
With the introduction of Bitcoin as legal tender, the government of El Salvador also wants to give the population the opportunity to carry out foreign transactions without having to pay horrendous fees. Cryptocurrencies as a means of payment could therefore also be interesting for African states. According to information from the World Bank, the Zimbabwean population pays around USD 90 million in remittance fees.
Ncube recently visited the DMCC Crypto Center in Dubai and was intrigued by the solutions to reduce remittance fees. He stated:
“I visited the DMCC CRYPTO CENTRE in Dubai, which is a fascinating centre for cryptocurrencies and payment solutions. I came across solutions that could reduce remittance fees from the diaspora.”
Several years ago, the finance minister already called on people to invest in bitcoin. Victor Mapunga, CEO of Flexfintx, reminded the minister that Zimbabwe is already home to numerous blockchain and crypto startups:
“We already have blockchain and crypto companies in Zimbabwe like @Flex_Tx working with local players.”
The CEO was supported by many others in the comments section, and some of them said that the country should do more to promote its crypto companies, especially since Zimbabwe has been hit the hardest by inflation.
Zimbabwe continues to experience high inflation rates, and cryptocurrencies are a great way to store value in the inflation-prone country.
Even as Zimbabwe experienced a rising influx of crypto investors, not everyone believed crypto was a good idea. Senator Jopa Sayeyo remarked on Twitter,
“When banks stop manipulating the foreign exchange rate, maybe the Reserve Bank of Zimbabwe can consider cryptocurrencies. Otherwise, it will lead to a massive crash of the ZWL.”
Concrete plans regarding bitcoin adoption are available to thebecause, however, not yet.
Bitcoin price falls to below 45,000 USD
Meanwhile, the price of the largest cryptocurrency fell within a few hours overnight from around 46,000 USD to as low as 44,500 USD. The bitcoin price has been in a consolidation phase for a few days now, and as a result, it has been hovering between USD 44,000 and USD 47,000.
While such movements are much more severe for many asset classes, this represents the usual volatility in the cryptocurrency sector. The bitcoin price had most recently risen from around USD 29,000 to nearly USD 53,000 from July 20 to September 7. The recent price setback thus represents a correction, which is very important for a healthy price trend.