This is one of the many possible uses for bitcoin. we've seen it happen in Venezuela, and we are now seeing it in Zimbabwe, and we might likely see it in many other countries that face the same difficulties. If bitcoin use gets well established there, this could open the doors for potencial investors in the country that could try opening business there, if they are allowed do it with BTC. This would help boost their economy again.
By being decentralized, BTC offers this opportunity to bypass some of the economy problems of a country, and gives them a way out that will help their recovery. If these things, or "unplanned experiments" go well, this will be a clear example on how valuable bitcoin can be.
Topic: [2017-10-23]Businesses in Zimbabwe are Forced to Embrace Bitcoin to Pay Bills (Read 355 times)
October 23, 2017, 08:45:31 AM
October 23, 2017, 05:44:03 AM
The financial situation in Zimbabwe is no joke these days. Without an official national currency, the entire region relies on the US Dollar. This also opens up new opportunities for other forms of money, including Bitcoin. While one BTC is valued at almost twice the marketplace, this is not due to speculation. Instead, businesses have bills to pay and they need Bitcoin to do so. A very surprising turn of events, to say the very least.
Most people see Bitcoin as a tool for speculators and market makers. That is certainly true to a certain extent. In Zimbabwe, things are very different in this regard. The country is struggling quite a lot when it comes to the financial sector right now. Solving these problems is anything but easy, yet bills still have to be paid. Local companies are now flocking to Bitcoin as a way to successfully remain afloat.
For a country completely reliant on the US Dollar, things aren’t looking good. Every single transactions in Zimbabwe is settled using greenbacks. The Zimbabwean dollar is effectively worthless and isn’t even considered to be a currency anymore these days. Replacing it with the US Dollar has been the only logical decision. More specifically, it makes sense to use the greenback in this regard.
At the same time, one has to keep in mind the local government needs to import cash every week. This situation is not exactly feasible for much longer either. Local companies are trying to move away from the US Dollar as much as possible. More specifically, they want to reduce the hassle associated with obtaining money from the central bank. Using Bitcoin makes a lot of sense in this regard. It also explains why Zimbabwe trades Bitcoin at around $10,000 right now. Greenbacks are incredibly difficult to come by in the country.
Full: http://www.newsbtc.com/2017/10/23/businesses-zimbabwe-forced-embrace-bitcoin-pay-bills/
Most people see Bitcoin as a tool for speculators and market makers. That is certainly true to a certain extent. In Zimbabwe, things are very different in this regard. The country is struggling quite a lot when it comes to the financial sector right now. Solving these problems is anything but easy, yet bills still have to be paid. Local companies are now flocking to Bitcoin as a way to successfully remain afloat.
For a country completely reliant on the US Dollar, things aren’t looking good. Every single transactions in Zimbabwe is settled using greenbacks. The Zimbabwean dollar is effectively worthless and isn’t even considered to be a currency anymore these days. Replacing it with the US Dollar has been the only logical decision. More specifically, it makes sense to use the greenback in this regard.
At the same time, one has to keep in mind the local government needs to import cash every week. This situation is not exactly feasible for much longer either. Local companies are trying to move away from the US Dollar as much as possible. More specifically, they want to reduce the hassle associated with obtaining money from the central bank. Using Bitcoin makes a lot of sense in this regard. It also explains why Zimbabwe trades Bitcoin at around $10,000 right now. Greenbacks are incredibly difficult to come by in the country.
Full: http://www.newsbtc.com/2017/10/23/businesses-zimbabwe-forced-embrace-bitcoin-pay-bills/
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