The inflation of Zimbabwe is soaring. This has led to an increase in the demand for cryptocurrencies. The Zimbabwe government has banned all banks and authorities from processing Bitcoin, and they have warned its citizens that the currency is open to hacking.

Despite the warning, investors consider cryptocurrency to be a mode of storing value, and many of them have been buying as much cryptocurrency as they can.

One of the investors, who felt that Zimbabwe currency does not have any worth in the country believes investing in cryptocurrency will help.
Dennis Kadengu stated, “Bitcoin, I think, is the safest cryptocurrency, and in terms of safety, you can have a large amount of money in equivalent to U.S. dollars or euros, having it on your person, moving it around even in seconds which is very beneficial rather than carrying a large bag of U.S. dollars on person.”

Inflation estimates at $500 billion made the currency worthless. And, the currency was abandoned in 2009. The cryptocurrency business got a boost when the authorities banned the usage of foreign currencies, eventually re-issuing the Zimbabwe Dollar.

Several people come to these traders stating ‘l want to move X amount of money’ or ‘l want to purchase a car in Japan,’ and these traders are accommodating them. In the long run, these traders feel that their businesses will be enhanced as well.

Prosper Chitambara, Labor and Economic Development Research Institute of Zimbabwe stated, “So, until and unless we have that infrastructure physical, and also the regulatory infrastructure to be able to regulate the activities around digital currency, l think it will be difficult for us to embrace it and for that to have positive spin-off for the country.”

Cryptocurrency is seen as an opportunity to stabilize the Economy. The White House in the U.S. is currently pressurizing the Federal Reserve to cut the interest rates to boost the lagging economy. This move is likely to increase inflation. While quantitative easing has been followed since 2008, people seem to adapt to rise until they cannot adapt anymore.

The market is already filled with a considerable influx of currency; the breaking point of enough of these currencies is already happening. People were becoming millionaires overnight due to the coming of currencies like the Bitcoin.

Capital controls like “anti-money laundering” (AML) and Know Your Customer (KYC) provisions are being made more stringent across the world to ensure the protection of investors and society.