Zimbabwe has been victim to a roller coaster ride of regulations from their central bank, the Reserve Bank of Zimbabwe (RBV), since early this year. The exact stance of Zimbabwe’s laws regarding cryptocurrencies is currently extremely murky. What regulations that have been put in place are incomplete and rife with loop holes.
In May of 2018 the RBV tried to ban all trade of cryptocurrencies. It was soon made clear that the RBV had overstepped their bounds when they ordered Zimbabwe’s largest crypto trading platform, Golix, to cease operations. Golix promptly took the RBV to court. The court date resulted in the RBV not even showing up in attempts to flee the imminent humiliation that awaited them. The high court of Zimbabwe had no other choice but to reverse the RBV’s ban and to allow Golix to continue business as usual.
Golix continues to operate today.
It’s unclear exactly what Zimbabwean parliament plans to do surrounding cryptocurrencies. The RBV has made no further official announcements regarding their stance on cryptocurrencies, though rumor has it that the RBV is torn regarding what to do. It’s in good interest of Zimbabwe to legalize cryptocurrencies, as they have the potentiality to stimulate the economy with the involvement of international parties. But the RBV may still want to ban them entirely in their own best interest. It’s anticipated that Zimbabwe will advance to place certain regulations around cryptocurrencies instead of banning them, following the lead of many other countries.
The Zimbabwean Peoples Stance
The people of Zimbabwe on the other hand, appear to only have open arms and excitement surrounding cryptocurrencies.
In 2008, Zimbabwe experienced hyperinflation, some of the worst ever recorded. Zimbabwean currency inflated by a whopping 79,600,000,000% in November of 2008, valuing the currency near worthless. The Zimbabwean government printed banknotes value from Z$10 all the way up to their highest note of Z$100,000,000,000,000 in one years time. Zimbabweans 100 trillion dollar note, is worth just 40 cents USD.
Since the inflation, Zimbabweans have been unable to use their own currency. The people of Zimbabwe have been searching for alternative ever since, and the the perfect solution to their problem arose with the invention of Bitcoin.
Bitcoin is the most popularly traded and used cryptocurrency in Zimbabwe. Some people in Zimbabwe have reported paying rent and buying commodities with Bitcoin. Other major Altcoins hold significant popularity in Zimbabwe as well including Litecoin, Bitcoin Cash and Monero.
Zimbabwean petitions are currently circulating on the web in attempts to encourage parliament to steer towards minimal regulation of cryptocurrencies as they are quickly become the life blood of the Zimbabwean economy. Is Zimbabwe chooses to ban or heavily regulate cryptocurrencies, the losers will the average Zimbabwean people.
Despite the uncertainties surrounding the future of Zimbabwean cryptocurrency law, some energetic entrepreneurs refuse to let it bring them down. Who are the creators of Zimbabwe’s newest cryptocurrency, ZimboCash? That remains a little ambiguous.
After reviewing the ZimboCash whitepaper, FAQ section, and just about every other nook and cranny of the ZimboCash website, no creators were revealed. The only description of who created Zimbocash I was able to conjure is the following, found in the FAQ section under ‘Who is ZimboCash?’
“We see ZIMBOCASH as a decentralized computer which runs itself with the help and goodwill of the community. It takes some humble and fair people to create and bring this machine to life.”
Despite the ambiguity of the creators of ZimboCash, their white paper outlines their timeline, plan, mission, and their overall focus to supply the people of Zimbabwe a fixed blockchain currency where money printing and inflation is not possible.
The official press release provided by TechZim, is as follows.
“We are proud to announce the launch of ZIMBOCASH – a cryptocurrency that is available to all Zimbabweans at no cost.
ZIMBOCASH is a cryptocurrency for all Zimbabweans. Any Zimbabwean with a Zimbabwean ID can register for their 100 000 ZIMBOCASH at www.zimbo.cash and will get more when they refer friends.
Following the registration period, we’ll launch the ZIMBOCASH cryptocurrency on a fixed blockchain. That means no more money printing. Only fast and secure transactions.
We’ll list ZIMBOCASH on a bitcoin exchange at a list price of US$ 0.02 each. Based on this value, each 100 000 ZIMBOCASH allocation could be worth up to $2 000. Buyers and sellers will be able to trade ZIMBOCASH with reference to a market price.
The registration period is for three months only – no new ZIMBOCASH will be allocated after 31 January. International buyers will be able to purchase ZIMBOCASH on the secondary market from Zimbabweans once it is listed on the exchange.
A white paper detailing ZIMBOCASH can be found on the website, www.zimbo.cash together with the registration form and other key details.”
At this time, ZimboCash is only available to be claimed by registered citizens of Zimbabwe, but the organization plans to list on international exchanges in the coming months.
Will ZimboCash be the cryptocurrency that offers Zimbabwe the stability they need?
It’s too early to tell. In fact there is some speculation surround the authenticity of Zimbocash and what its intentions are. Some have commented on the press release with allegations that ZimboCash is a scam, so please be careful when investing this new coin.
Whether ZimboCash is a fraud or not, the people of Zimbabwe are hungry for a new cryptocurrency they can trust, to stimulate their economy and the lives of the people.