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December 5, 2022
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Zimbabwe government closes to officialize Bitcoin as legal tender

Zimbabwe has noted the growing demand for cryptocurrency from its population, which it sees as a potential growth path.

Minister Ncube believes that cryptocurrencies will be better served as an investment-grade instrument than as legal tender. This position suggests that the Victoria Falls stock exchange platform could list cryptocurrency-based products in the near future.

The minister appears to be advocating that his government and others enjoy the benefits of blockchain technology. That is, without giving up economic control. With commission rates for all shipments from Zimbabweans living abroad reaching 20%, the use of disruptive technology like the blockchain could significantly reduce these costs. Thus increasing the value of remittances to Zimbabwe’s economy from its current 7%.

Retired Brigadier General Charles Wekwete, permanent secretary and chief of staff for the e-government technology unit, confirmed that negotiations with the companies are ongoing.

The disadvantages of the decentralized ecosystem, according to Charles Wekwete, include unrecorded cross-border transfers, international transfers, money laundering and illegal cash flows for other illegal or illegal activities.

He also said authorities are working to develop rules to protect consumers and improve the country’s financial future. Therefore, before making any major policy changes, the government sought input from various sectors.

Africa and cryptocurrencies.

The adoption of cryptocurrencies in Africa is at an all-time high. This growth may be the result of a few factors. The devaluation of fiat currencies compared to cryptocurrencies, which has seen significant growth, leads citizens to seek more protection for their money. The ease of international transactions also serves as a contributing factor to the adoption of cryptocurrencies. Remittances to African countries can be completed in seconds compared to days when using traditional banks for a fraction of the commission cost.

Africa is a fantastic testing ground for cryptocurrency, and many companies are now producing goods and services suitable for various countries on the continent.

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