Zimbabwe Aims to Solve Money Problems By Using Blockchain Technology

The Zimbabwean currency’s collapse in 2008 and record hyperinflation are widely seen as textbook examples of what can go wrong with a centralized currency. For instance, some cryptocurrency enthusiasts — as well as opponents of the fiat currency system in general — have routinely pointed to the Zimdollar’s collapse when arguing for an alternative monetary system.

In other instances, entrepreneurs like those behind Zimbocash, a decentralized currency and payments platform for all Zimbabweans, have already launched such an alternative. They hope that this alternative to a central bank-issued fiat currency will demonstrate to all that sound money which enables people to save is still possible.

In a recent interview with Laswet Savadye, Head of Subscriber Network. Below are Savadye’s responses to questions that were asked

We’ve been passionate about sound money said Savadye when he was asked what brought about the idea. Many in the team have been exposed to Zimbabwe’s first hyperinflation and the pain of money printing, and this was further reinforced with the book When Money Destroys Nations. We are passionate about solving the problems of money printing with sound money. This is the only way for there to be sustainable savings, trade, and wealth creation on a national scale.

Our broader goal is to establish sound money for Zimbabwe , Savadye continued, talking about their aim on zimbocash— we have created money that is fixed in supply but available to all Zimbabweans. Zimbabwe has an extremely weak currency and banking system, having suffered from hyperinflation and economic malaise. We want to see the economy of Zimbabwe being transformed with sound money.

The goal is for trust to be restored in the money and banking system. The Zimbocash system is based on a decentralized blockchain — a revolutionary technology that enables a fixed supply of money and a reliable payments system. Zimbcash is not competing with the local fiat currency. We believe there is room for both to co-exist. Zimbocash is not trying to replace the fiat currency, rather it comes in to complement by being an alternative currency that people can use.

When asked if they have two tokens available – one airdropped to Zimbabweans and the other listed on which is listed on the South Korean cryptocurrency exchange, Bithumb he responded by saiyng “We do not have two cryptocurrencies. We have one and it is publicly available for all to see on tronscan https://tronscan.io/#/token/1002984. Listing on the exchange requires one to put an exchange float that will be used for buying and selling in order to come up with a reference price.”

He commented on the Finance Minister’s remarks in 2018, when he said “Zimbabwe should be investing in understanding innovations and often central banks are too slow in investing in these technologies.” He said, We remain supportive of the Finance Minister’s remarks. It would be great if that was the case. This is currently a new technology and no one else has successfully enabled a blockchain with a fixed money supply for an entire nation so, in many ways, this is an innovative technology. We believe that the government is taking the right approach, i.e. a wait-and-see approach. As the market grows we believe that there will be appropriate engagement and regulation from a point of greater understanding.

When asked what he thought about the readiness of Zimbabweans embracing cryptocurrency, he said “Zimbabweans are more than ready for digital currencies. RTGS dollars is digital and the people have had much-needed practice from using current mobile wallets such as Ecocash and Onemoney. We’re seeing a lot of excitement about the Zimbocash system and we believe we have an opportunity to establish something really unique in the world.”

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