As Zimbabwe collapsed once again the national fiat currency; Is experiencing a serious dej vu, which causes an increase in the use of cryptocurrencies.
Inflation rate in Zimbabwe dollar (ZWL) reached 89.7% of the year in 2008. The currency value was falling so quickly that people had to run to the store the moment they paid; because if they wait to buy goods, their money would lose value at night.
The Zimbabwean government tried to tackle this situation by renaming ZWL, removing three zeros in August 2006, removing 10 zeros in July 2008, and removing 12 zeros in February 2009. As a result, ZWL was abandoned in 2009 and moved to other major fiat currencies such as the US dollar and the Euro.
Nevertheless, with the launch of the Zimbabwe convertible currency, which was later supported by the USD; In 2014, he started to issue his own fiat currency again.
Finally, a new bond bill was issued, and then Zimbabwe only launched the RTGS dollar, which was in force between June and November 2019. Although the RTGS dollar was in place for only a few months, the inflation rate reached 100% and the new Zimbabwean dollar came in place of the RTGS dollar.
Indeed, the currency of Zimbabwe collapsed before it even completed 10 years, and both of the current currency is the result of the Zimbabwean government’s printing of as much money as it wants. The government is doing this to pay off debts and buy something, but the currency is not supported by anything, and this currency pressure is causing the currency to collapse.
Since Zimbabwe uses mobile money payments to convert citizens into secure port assets such as cryptocurrency and major global fiat currencies; It banned mobile money payments, especially EcoCash.
Indeed, EcoCash is often used to buy Bitcoin, and there is a very high demand for Bitcoin right now.
EcoCash refused to comply with the Zimbabwe government. The Zimbabwe government also blames the stock market and EcoCash for the collapse of the Zimbabwe dollar.
Zimbabwe will be able to make EcoCash illegal, but this will not prevent Zimbabwe citizens from converting their money into Bitcoin, other major cryptocurrencies and major global fiat currencies, because it has become a life-and-death war.