Bitcoin Growing In Zimbabwe,

Which Has No Own Currency

On local exchange Golix in Zimbabwe, bitcoin rate rose by 10%, after the armed seizure of power.

The price of cryptocurrency in southern African country increased to $ 13 499, which is almost double rate of it’s international market price.

Demand for bitcoin in Zimbabwe grew up, caused by a deficit of hard currency. According to the Exchange website (https://golix.com/markets/btcusd), over the past 30 days, the company has processed transactions worth more than $ 1 million, compared to the turnover of $ 100,000 during the entire 2016 period. Zimbabwe doesn’t have its own currency, and the government accepted the US dollar and the South African Rand, as well as some other currencies, as legal way of payment in 2009, after hyperinflation made the local dollar worthess.

Golix, an unregulated platform that also trades with other crypto currencies, started from 2014. The prices for bitcoins are set by supply and demand, says co-owner of the exchange Taurai Chinyamakobwu.  US dollars are paid to sellers electronically, then being  converted into cash at a large discount in the black market.

The capital Harare was captured on Tuesday, after a week of confrontation with the government army of President Robert Mugabe. Rebels put forward an ultimatum on president to take measures for avoiding violent conflict in the country, which he ruled since 1980.

Deep crisis

The events unfold against the backdrop of a deep crisis in Zimbabwe. Since 2000, the economy decreased about two times: nearly 95% of the country’s citizen has no work, and 3 million Zimbabweans left the country.

While most of the major currencies are legalized in Zimbabwe, importers and retailers with cash shortages buy dollars or any currency at a price higher than par, paying for them electronically. The dollar costs about 8 South African Rand, however, for example, on Wednesday the market exchange rate was 14.36.

The unpopular “debt bonds” of Zimbabwe – simple promissory notes issued by the central bank and formally tied to the dollar, cost only 50 US cents on the black market.

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