Zimbabwe’s Zimbocash project got closer to its goal of providing a sound-money alternative to the hyperinflation of the local currency.
A project developing a national decentralized currency network in Zimbabwe has received a big boost with the listing of its Zimbocash (ZASH) token on the Bithumb Global exchange.
According to a May 22 report in the Zimbabwe Independent, the listing will enable the currency to grow substantially, providing a sound-money alternative to the crumbling Zimbabwean Dollar.
Coronavirus adds to Zimbabwe’s economic woes
The Zimbabwean economy already faces a crisis, with an inflation rate of around 500%. As Cointelegraph reported, the Reserve Bank of Zimbabwe was earlier this year considering a fintech sandbox, whilst also focusing on stabilizing the local currency.
However, the impact of the coronavirus pandemic has dealt a devastating blow, with many believing that the government is now insolvent with little borrowing capacity left. Zimbocash’s head of communications Philip Haslam said in a statement:
“The government has admitted that it is going to print money on a large scale to fund itself, which could push the country into hyperinflation […] We believe that Zimbocash is perfectly positioned to solve this problem by fixing the amount of money in the country using blockchain technology. Our aim is to provide sound money.”
Global listing provides much need liquidity
In order to succeed, Haslam says that Zimbocash needs a network of scale and a liquid market price to use as a reference in daily trade.
While work on the former has been continuing for some time, the new listing both provides the liquidity required and validates the work done thus far on network growth. Haslam believes that the project is realizing some of Bitcoin’s (BTC) potential:
“We are fulfilling the dream of Bitcoin — we’re developing a peer-to-peer payments platform and facilitating on-the-ground trade in a country.”
Zimbabwe desperate for sound money
While the prospect of launching an alternative national currency may seem daunting to some, Zimbabwe is crying out for such a solution to its economic problems. Head of the Zimbocash subscriber network Laswet Savadye explained:
“Zimbabwe is perhaps the only country where you would be able to establish a decentralised currency network of scale. Zimbabweans are desperate for a sound-money solution and there is no other alternative like Zimbocash.”
Zimbocash is offering free tokens to Zimbabwean residents who register, along with referral bonuses. The reward halves every three months, and currently stands at 3125 ZASH.
While the Bithumb listing will allow users to cash-out, its main goal is to establish a market price and facilitate daily trade.