The finance minister of Zimbabwe discussed at length the benefits of cryptocurrencies in the payment’s sector
Mthuli Ncube, Zimbabwe’s Finance Minister, advocated for crypto following a visit to the DMCC Crypto Centre in Dubai. He acknowledged the usability that crypto presented, noting that crypto-based solutions would go a long way in lowering the costs incurred in facilitating remittances from abroad.
“I visited the DMCC CRYPTO CENTRE in Dubai, which is a fascinating incubation hub for cryptocurrency and payment solutions. Came across solutions that could lower charges for diaspora remittances,” the Zimbabwean minister tweeted.
Many might have only seen the benefits Zimbabwe would gain from the uptake of crypto, but some users on social media asked for caution. One user claimed that banks in the country were notorious manipulators of the forex market and that taking up crypto might cause a crash of the Zimbabwean dollar.
“When banks stop manipulating the forex exchange rate then maybe then RBZ can consider cryptocurrency. Otherwise it will lead to massive crash of the ZWL.”
It also did not seem like Minister Ncube really had the feel of what was happening on the ground in Zimbabwe. Members of the crypto community quickly pointed out that there already were crypto startups to achieve the crypto solutions he was advocating for. The CEO of Flexfintx, Victor Mapunga, pointed out the existence of said startups to the minister.
“We already have blockchain & crypto companies in Zim such as @Flex_Tx, work with local players.”
A report by Techzim also appeared to suggest that the minister was uninformed on crypto matters in Zimbabwe. The report questioned the need to seek solutions in the United Arab Emirates while the country already had startups such as Zimbo Cash, Uhuru Wallet and Dystater that offered the faster, cost-reduced crypto solutions to simplify the cross-border transfer of finances.
Around the time of his appointment back in 2018, Ncube became an outspoken proponent of crypto. He pushed for the use of these digital assets to aid Zimbabwe’s failing financial system. At the time, the finance minister had proposed that Zimbabwe needed to follow the route of Switzerland in adopting crypto solutions.
Noting the importance that innovation held, he stated that more often than not, central banks remained behind in exploring such technologies. He promised to drive the Reserve Bank of Zimbabwe into establishing a crypto division intended to invest in and understand Bitcoin. This, he explained, would help the top banks in the country to understand digital assets.
The adoption of crypto would potentially go a long way in advancing the stability of Zimbabwe’s economy. Crypto’s store of value would arguably beat the extreme levels of inflation and economic turmoil in the country.