SOUTH African financial services group Africa Bitcoin Corporation (ABC) is exploring a potential listing on the Zimbabwe Stock Exchange (ZSE) or the Victoria Falls Stock Exchange (VFEX), businessdigest can reveal.
The move aims to provide the local market with regulated access to Bitcoin, the world’s premier cryptocurrency.
Since its inception in 2009, Bitcoin has achieved significant global recognition.
For instance, BlackRock Inc, the world's largest asset manager, holds approximately US$86,22 billion in Bitcoin exposure through its iShares Bitcoin Trust Exchange Traded Fund, underscoring institutional confidence in the digital asset.
This growing acceptance has contributed to a substantial surge in Bitcoin's value, with it trading around BTC1:US$107 777 on Monday, boasting a market capitalisation of US$2,14 trillion.
In Zimbabwe, cryptocurrency first gained traction around the first quarter of 2017, offering an alternative source of income for many.
However, in May 2018, the Reserve Bank of Zimbabwe directed all financial institutions to cease trading in cryptocurrencies via its circular “Virtual Currencies”.
Consequently, Zimbabwean investors and local entities were unable to participate in Bitcoin’s subsequent price appreciation, which has exceeded 10,112% to date.
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“We have dual listed in Namibia. So the Namibians are now connected to us. One of the reasons I am here today is actually to see if we can dual list on the Zimbabwe Stock Exchange,” revealed ABC director Stafford Masie during last week’s In Conversation with Trevor Ideas Festival in Nyanga.
“It will probably be the US dollar market. I can't announce anything now as we are speculative right now, we are looking at the market, gathering data and engaging stakeholders to see if it's relevant.”
He explained that the listing would enable Zimbabweans to gain regulated, indirect exposure to Bitcoin through the equity market, despite the current ban.
“When you buy the equity in our business, our business has declared clearly our mandate is that whenever we sell equity, the proceeds from those sales go directly to building up our Bitcoin treasury,” Masie told businessdigest.
“So, essentially, our business, our responsibility, is to keep building and stacking Bitcoin per share.”
With Zimbabwe hosting two exchanges—the ZSE, where the ZiG is the currency tendered, and the US dollar-denominated VFEX—Masie confirmed they are deliberating on the optimal bourse for their listing.
Bitcoin stands as the only global asset to have grown at a 30% compound annual growth rate over the past 16 years, cementing its status as a top-performing asset.
The proposed ABC model is designed for investors seeking Bitcoin exposure but who find it difficult or restricted to hold the asset directly.
The targeted investor base in Zimbabwe includes retail investors, high-net-worth individuals, and institutional financiers such as pension funds.
“It is diversification. It makes sense, and they can do it in a regulated security on the Zimbabwe Stock Exchange. It is regulatory-aligned exposure to Bitcoin,” Masie added.
He argued that Zimbabwe’s persistent macroeconomic challenges and reliance on the US dollar highlight the need for a robust alternative store of value.
“The problem of the US dollar is it is getting weaker and weaker because they are printing more and more US dollars; that is not sustainable,” Masie said.
