A Zambian tax expert Oswald Mungunle says Zimbabwe needs to adopt cryptocurrency as a solution to its monetary problems.
Zimbabwe is currently haunted by foreign currency shortages amidst stagnant industrial production and a failure to sustain its own national currency value.
While addressing the National Economic Advisory Council in Zimbabwe, Mugunle said the country should learn from the World Bank which invested in Tether (USDT). USDT is a cryptocurrency 9th by market capitalization; with its value equivalent of the US dollar at a 1:1 rate.
In his remarks he explained
Zimbabwe should look for an underlying asset to base the crypto currency. The country can create a cyber currency using stable coins for bigger companies to make international payments and can peg this on gold or diamonds which have stable value.
Additionally, Mungunle said government should get involve in cryptocurrency, encourage innovation and support for the market in terms of providing regulatory environment and transparency out of which it can be able to get tax.
The African nation currently maintains a stern policy on cryptocurrency as government fear it could spur tax evasion. Despite this rigid stance, Finance Minister Mthuli Ncube had last year hinted at the possible introduction of cryptocurrency as legal tender; with the country’s government keen on establishing their own currency to curb the downtrend of the Zimbabwean dollar (Z$) against the US dollar.
Fiat transactions in the country haven’t helped this course either, citizens are unhappy with the exorbitant charges and deductions by most banks on small transactions and online payments.
What are your thoughts on this? Will cryptocurrency solve the Zimbabwean problem?