Zimbabwe’s economic crisis and financial difficulties are making cryptocurrency trade the new dawn in the payments and flow of money. With the huge liquidity issues here and there, most people have resorted to using bitcoin for transactions, especially for international trade and payments. This has also yielded results of increasing bitcoin prices – with a current trade price of about 9,000 USD against global trade price of about 5,000USD. The countries famous trade platform for bitcoin, Golix, says there is a higher demand than the supply within the cryptocurrency industry in Zimbabwe. She furthered to mention that Interest in bitcoin has peaked as people cannot send money outside or pay for international transactions using formal banks. Mobile money and other alternative means of transaction are not being fruitful.
Users can pay for their international purchases without hassle. With increase shortage of the dollar notes, the reserve bank aims to print its own dollar notes but offering it at a 30 percent premium compared to the actual US dollar. This has gone a long way to influence inflation – increased in pricing for high-need goods, and a shortage of consumer products as import payments is a struggle for key players. There is an existing ban on fruit importation in the country as this was described as a poor use of inadequate foreign currency. This has also led to a ripple effect of shortages in supply as local production is not able to meet the fruit market demand.
As the country works to unwind the situation, the leadership of Zimbabwe is also concerned about the circulation of untrue information regarding the economic status of the country including exchange rates via social media platforms. The country has acted on forex earnings with a 7 percent increment on incentives on export receipts.