Zimbabwean President Robert Mugabe, who sacked his deputy Emmerson Mnangagwa, upset the parallel exchange rate between the US dollar and bonds, As well as Bitcoin price in the country
Bitcoin was already trading at a very high rate in the African country in trouble, its demand skyrocketed as a potential alternative to the dregs of a currency that the Zimbabwe has left. However, this inflation has reached almost 100 percent while it exchanges around $ 13,000 per room.
Uncertainty Trading
Unsurprisingly, with this latest coup of the president being cut off, there is a lot of speculation and concern about the fiduciary money system. already fragile and almost non-existent. Zimbabwe operates on bond notes linked to the US dollar
Traders have tried to withdraw monetary assets because even with the dollar, there is a premium of 62%. This means that investors are trapped by currency shortages, seeking an alternative to exit the country – like Bitcoin.
Despite a price of more than $ 13,000, traders say that Bitcoin is booming.
Collapse of Banks
Zimbabwe Begins to Act as an Interesting Case Study on What Happens When a Country Starts to Crumble Around Its Monetary System – we also see it in Venezuela.
The money transfer from Zimbabwe begins to become impossible, and while people are trying to flee monetarily out of disrepair, they find refuge in Bitcoin.
Soon, banks in Zimbabwe said that Visa debited the cards would no longer be usable for international payments without prior arrangements and pre-financing with hard currency.
"You will be required to make front-end arrangements with the bank," Stanbic said in a message to the depositors last week. Econet Wireless also stopped foreign payments on its MasterCard-related EcoCash mobile debit card
Bitcoin as a safe haven
Due to the decentralized nature of Bitcoin, there is no has no impact of this policy. upheaval, in fact, it only benefits that. The bitcoin premium of nearly 100% is not due to political problems, but rather to the strong demand for collapse.
Bitcoin again shows its potential and power when the banking system again shows its collapse and hysteria