Today’s modern world is struggling to make life much easier and accessible through technologies. In this regard, cryptocurrency has played a very essential and undeniable role. Most of the countries of this global village have switched to cryptocurrency trading instead of plain currencies. The traders believe that they can earn more significant profit using cryptocurrency technology, which is a fact.
Cryptocurrency has balanced the financial fate of several countries. It has regulated the economic situation in the countries facing severe disasters. Moreover, during the COVID-19 global pandemic, cryptocurrency played a considerable role for unemployed people to stabilize the financial crises.
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Cryptocurrency in Zimbabwe.
Like several other countries, Zimbabwe has also adopted cryptocurrency to maintain its deteriorated financial condition. Before the adoption of cryptocurrency, Zimbabwe faced a lot of financial crises. Most people were unemployed in Zimbabwe, and there was no chance for them to be employed. In this case, cryptocurrency proved to be a massive boon for Zimbabwe’s people in providing such a platform through which Zimbabweans can make money.
Bitcoin is one of the top used cryptocurrencies in Zimbabwe. More and more people of Zimbabwe adopted Bitcoin for profitable tradings. However, where cryptocurrency imparted a hugely positive effect on Zimbabwe’s economy, it caused some risk and troubles.
Cryptocurrency ban in Zimbabwe
With the rise of cryptocurrency usage, fraudulent activities and scams went on the peak in Zimbabwe. Most of the beginner crypto traders fell prey to those scams and fraudulent activities: this activity imparted a very negative effect on the Zimbabweans and their government.
With the increasing ratio of online scams, Zimbabwe’s reserved bank, on December 2, 2017, issued a statement declaring that all digital assets, including cryptocurrencies and virtual currencies, are listed as illegal tender in Zimbabwe. Moreover, the Reserve Bank of Zimbabwe also issued some warnings regarding the usage of cryptocurrencies:
The country’s laws in Zimbabwe prohibit digital currencies as it is not a legalized tender. Hence, any Zimbabwean who trades, invest, or participate in any transactions related to cryptocurrency will not have any legal protection and will undoubtedly face punishment.
Moreover, the reserve bank of Zimbabwe, in May 2018, issued an order related to virtual currencies for the financial institutions:
- Not to trade, hold, or transact via Virtual currencies, especially cryptocurrency.
- Do not provide any variety of banking facilities for the entities or individuals found dealing with digital currencies; and
- Within two months, dismiss any professional relationships with cryptocurrency exchanges.
Zimbabweans response over cryptocurrency ban
Although Zimbabweans faced significant loss due to the online scams and fraudulent activities associated with virtual currencies, they did not positively respond to the ban of cryptocurrency. Most of the traders weren’t happy over this ban.
People of Zimbabwe believed that there are some dangers associated with crypto, so the government should eliminate those risks instead of banning cryptocurrency.
Regulation of cryptocurrency
After the cryptocurrency ban in Zimbabwe, Zimbabweans faced severe hyperinflation and excessive government intervention in monetary policy. Due to the prohibition of cryptocurrency, Zimbabwe faced a harrowing surge in crypto tradings.
However, after a short period, Zimbabwe is finally ready to take cryptocurrency seriously after Zimbabweans’ negative response. Zimbabwe’s government has finally recognized that the cryptocurrency trend cannot be neglected just because of some fraudulent activities. So the reserve bank of Zimbabwe finally took a recognizable step in cryptocurrency regulation.
The RBZ issued a statement claiming that Zimbabweans can use cryptocurrency for economic balance. However, it was strictly asked to follow all the government’s regulatory policies so that Zimbabweans can get a scam-free crypto environment.
Due to the fraudulent activities, trading through virtual currencies was banned entirely in Zimbabwe. However, after recognizing its worth and trend, the RBZ finally welcomed the cryptocurrency with an open heart. However, the people of Zimbabwe are still asked to follow the regulatory policies. This imparted a very positive effect on the people and economy of Zimbabwe.