In the recent development in Zimbabwe, The Reserve Bank of the country is stopping all bitcoin and crypto transactions in the country. Although Golix the major cryptocurrency exchange platform has filed an appeal with the court, but it seems cyrpto users in Zimbabwe are in for one long walk. But the question was/is this ban by the Zimbabwe central bank really necessary? Is this in the best interest of the citizens and is this a wrong call? Let’s take a look at some analysis below
ZIMBABWE WAS ONCE THE MOST EXPENSIVE BITCOIN MARKET
Somewhere in the last quarter of last year, Zimbabwe was the country holding the record of the most expensive bitcoin market. While global bitcoin price was trading at $11,000, Zimbabwe market was trading about $17,000. According to some source, the reason for this high price was because Zimbabwe citizens were using bitcoin as their major means of international exchange.
So if Zimbabwe citizens have gotten use to the use of cryptocurrencies, why is the Reserve Bank of Zimbabwe(RZB) not making policies that is favorable to both crypto users in the country and cryptocurrency exchange platforms. Other European countries are doing just that and it would be nice if African countries can find a way to accept and live with cryptocurrency.
EFFECT OF THE ZIMBABWE BAN ON CRYPTOCURRENCY USERS AND EXCHANGE PLATFORMS
The recent cryptocurrency ban in Zimbabwe will not be favorable to both crypto users and exchange platforms in the country (At least for a period of time before they finally recover). According to Golix (Golix is the leading crypto exchange platform in Zimbabwe), the bank accounts of Golix have been frozen. This means that all payment made by users and all payment that was to be sent to users are all frozen and these transactions are pending.
How about users/citizens that have invested money in crypto before this sudden shutdown, this means that all possible investment is possibly lost. So while Zimbabweans may come to live with this new development as time passes by but within the next few months there will be shock and hopes that the Reserve Bank of Zimbabwe(RZB) reconsiders.
Conclusively, it will be better if the Reserve Bank of Zimbabwe can just come up with policy/policies that will regulates the way cryptocurrency is use/traded in the country. Somehow this will be better than an outright ban on the use/trade/exchange of cryptocurrency in the country.