The introduction of yet another new currency adds to the ongoing challenges of navigating Zimbabwe’s economic landscape. As history has shown, these moves have not often gone according to plan. The currency changes have led to the dollar losing its value and sky high inflation. The significant loses have affected peoples day to day survival and pensions have been literally wiped out. That is not to say that some have not benefited from the chaos. In times of chaos, there will always be a handful of people who will thrive.
The question now looms: what will this new currency bring? With money constantly shifting between different forms, it’s difficult to gauge the true value being lost in these transitions. This uncertainty begs another question: is it time to explore alternative financial strategies, such as adopting cryptocurrency?
Cryptocurrencies like Bitcoin were designed to address some of the shortcomings of traditional currency systems. They offer decentralisation, putting control of assets directly in the hands of individuals rather than relying on centralised authorities like banks or governments. This means you have full autonomy over your wealth, independent of any single institution’s decisions.
To add to that, cryptocurrencies operate on transparent public ledgers, ensuring that all transactions are visible and traceable. This transparency fosters trust in the system, which is especially crucial in regions where financial institutions may lack credibility. Some pundits put down TRUST as one of the major issues of Zimbabwe’s economic woes. There is NO TRUST in the government as far as what they will say or do with the money supply.
One of the most attractive features of cryptocurrencies in Zimbabwe’s context is their potential as a hedge against inflation. Unlike fiat currencies that can lose value rapidly due to economic instability, many cryptocurrencies have built-in mechanisms to limit inflation, offering a more stable store of value over time. For example, in the case of Bitcoin, there will only ever be 21 million. Once that amount has been reached, that’s it! More Bitcoins cannot be mined or in the case of fiat currency, printed.
For Zimbabweans accustomed to trading in United States Dollars, converting some of those hard-earned dollars into cryptocurrencies Bitcoin or even a US dollar stablecoin such as USDT (Tether) or USDC (USD Coin) could be a consideration. A stablecoin is a cryptocurrency that is pegged to a currency, in the case of the latter, the U.S. dollar. By doing so, you’re essentially parking your funds in a more stable and potentially appreciating asset until needed. There are opportunities to earn passive income via methods such as staking (we won’t cover this here, please do some research if it is of interest to you).
Despite the Zimbabwean government’s reservations about cryptocurrencies, there are ways for individuals to buy, hold, and transact with them. With the current state of the financial infrastructure, moving from fiat to crypto may require some creativity but, the process is relatively straightforward with the right guidance.
Easy Crypto – A safe and easy Bitcoin & Cryptocurrency retailer
Exodus – Bitcoin & Crypto Multichain Web3 Wallet
Trezor – Securely store, manage, and protect your coins with Trezor hardware wallets, app & backup solutions
To get started, all you need is a cryptocurrency wallet. Software wallets like Exodus or hardware wallets such as Trezor provide secure storage for your assets and give you complete control over your funds. This self-custody (where you hold your assets in a wallet versus an exchange – think FTX!) is generally advisable. It minimises the risk of losing assets held on exchanges due to security breaches or regulatory actions.
When choosing a cryptocurrency exchange through which to buy and sell crypto, it’s essential to opt for reputable platforms that prioritise security and compliance. Researching exchanges and understanding where your assets will be held is key to safeguarding your investments.
Exploring cryptocurrency as part of your financial strategy could offer Zimbabweans a way to navigate economic uncertainty more effectively. By embracing the principles of decentralisation, transparency, and inflation resistance, individuals can take greater control of their financial futures. So, consider getting a wallet, signing up with a reputable exchange, and diving into the world of cryptocurrency to see what benefits it can bring to your financial well-being. With the right knowledge and tools, cryptocurrency adoption can empower individuals to thrive in challenging economic environments.
Yes, we need money to live day to day, you may be in a situation where you have a few dollars to save or invest. What if you could put that money away into an instrument that you have full control over, where it holds value, and possibly increases in value over time? Imagine being able to transact 24/7, from wherever in the world, without limits and without having to queue up. What if?
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