Blockchain Technology Aims to Solve Zimbabwe Money Problems

Hyperinflation and the collapse of the currency of Zimbabwe in 2008 are well-known examples of what can go wrong when a central currency is used. When arguing for an alternative currency system, cryptocurrency advocates — and even opponents to the fiat currency system generally — often point out the Zimdollar’s fall when they do so.

Zimbocash is a venture capitalist that has created a decentralized currency and payment platform for Zimbabweans.

Many members of the team were exposed to Zimbabwe’s first hyperinflation, as well as the pain and inconvenience that money printing can cause. This was reinforced by the book When Money Destroys Nations. We are passionate about solving problems associated with money printing by using sound money. This is the only way to create wealth on a national level through sustainable savings, trade, or wealth creation.

Our larger goal is to create sound money for Zimbabwe. We have created money that is in constant supply, but accessible to all Zimbabweans. Zimbabwe’s currency and banking system are extremely fragile. It has suffered from economic malaise and hyperinflation. We want to see Zimbabwe’s economy transformed by sound money.

Trust in money and the banking system must be restored. Zimbocash is built on a decentralized blockchain, a revolutionary technology that allows for a stable supply of money and reliable payments.

Zimbcash does not compete with local fiat currencies. Both can co-exist, according to us. Zimbocash does not intend to replace fiat currency. Rather, it is meant to be an alternative currency people can use.

We don’t have two cryptocurrencies. We have one and it is publicly available for all to see on tronscan https://tronscan.io/#/token/1002984. To list on the exchange, one must create an exchange float which can be used to buy and sell in order to arrive at a reference price.

We need a market price to be able to trade cross-border. Over time, liquidity grows. It is fragile. It is fragile. There have been some national airdrop systems which failed because they didn’t spend the time to build the payment network directly. Everyone also sold directly on the exchange, pushing down the price.

First, we need to develop a peer-to–peer trading network. As liquidity grows, then we can slowly open up the exchange. The demand for Zash locally will rise as transactions increase. Internationally, there will be a greater demand for Zash, a sound money token with a peer-to-peer network. These two factors will lead to increased buy liquidity and decreases in sell liquidity. These two forces will allow us to open up exchange transfers more frequently.

We will limit the amount of Zash that users can buy. We want users to make the right transactions. We will also be closely monitoring high-value people who have large amounts of Zash. This Zash should be used for daily trade.

We are happy to announce that transfers to the exchange have been opened for those who make the most transactions per month. Although this is a first step, we plan to gradually open up exchange transactions over time and reward those who make transactions.

Similar remarks were made by the Finance Minister in 2018. He stated that “Zimbabwe should invest in understanding innovation and sometimes central banks are too slow to invest in these technologies.” We support the comments of Finance Minister.

It would be wonderful if this were the case. This is a brand new technology. No one has ever succeeded in enabling a blockchain that provides a fixed amount of money for an entire country. It is innovative technology. The government seems to be taking the right approach. We recommend a wait-and see approach. We believe that the market will grow and there will be appropriate regulation from a place of greater understanding.

CBDCs don’t use blockchain principles to fix the money supply. All these CBDCs will be linked to global CBDCs, allowing for global control over the transaction. In a world in which all transactions are digital, governments around the globe will resort to massive money printing. This is a serious global problem right now. Our goal is to fix the money supply in Zimbabwe using blockchain technology.

Every Zimbabwean citizen, including the government and businesses, should be able rely on the economy. The risk of Zimbabwe getting trapped in a digital currency system at the global central bank could be disastrous.

The RTGS dollar is a digital currency that functions as a central bank. Two key questions are: Can a CBDC create a CBDC that isn’t controlled by an offshore power?

Zimbabweans are ready to accept digital currencies. RTGS dollars are digital, and people have been able to practice using mobile wallets like Ecocash or Onemoney. There is a lot of interest in Zimbocash and we believe that we have a unique opportunity to make it a global standard.