Zimbabwe's long-standing hyperinflation nightmare has persisted for decades, and even after the government introduced the real-time gross settlement dollar (RTGS) this year, it has been difficult to gain the trust of the people. In response, the Zimbocash cryptocurrency project has emerged, aiming to establish a successful payment network in the country and address the longstanding economic challenges.
When searching "hyperinflation" on Google, you may come across Zimbabwean banknotes with denominations as high as one hundred billion, making the country akin to Venezuela in terms of hyperinflation, leading people to seek alternatives to traditional fiat currencies.
Previously reported by ABM, the Zimbabwean government introduced a temporary currency called RTGS this year, ending a decade-long dollarization policy and declaring it as the country's sole legal tender.
Following the new policy, Bitcoin trading in Zimbabwe has seen significant growth. In addition, the cryptocurrency payment provider Kuvacash has partnered with DASH in an attempt to offer financial services to the people of the country to improve the economy.
However, Zimbabwe's economic situation makes it difficult for people to convert fiat currencies into cryptocurrencies in large quantities, as most individuals do not have access to significant amounts of cash, making it challenging to acquire a certain amount of cryptocurrency.
In order to achieve feasibility, Zimbabweans do not need to spend money to acquire Zimbocash; anyone can apply through a simple registration process. The project is free for residents of the country, with 25,000 ZIMBOCASH tokens allocated to registered users. The allocation will gradually decrease over time, similar to Bitcoin. Once the distribution phase is complete, the founders hope to list it on exchanges, allowing the free market to determine its value.
Although the issuance plan may sound like printing money, co-founder Philip Haslam is confident that Zimbocash can develop into a successful payment network using blockchain technology. Haslam, an economist and author of "When Money Destroys Nations," believes that through registration, people do not lose anything, and once enough users have and use the currency, network effects will take over, creating a cohesive force within the community.
According to a report, the team is actively working to attract more users and will hold a seminar in September, with over 11,000 users currently registered. The team emphasizes the importance of time, as the Zimbocash allocation will halve after September 30th, with subsequent halving every three months.
Philip Haslam hopes that decentralization can solve the country's severe financial issues. By using blockchain technology, Zimbocash's "fixed total" will become the standard, preventing hyperinflation. He points out that this will not be limited by centralized organizations, making it nearly impossible for anyone to shut it down, lock someone's wallet, or prevent cross-border transfers.
The team is in discussions with major cryptocurrency exchanges to issue an Initial Exchange Offering (IEO) and plans to create tokens on the TRON blockchain. Explaining that 10% of the total token supply will be sold through IEO, allowing the international market to assist in pricing, enabling Zimbabweans to sell their TRON-based Zimbocash for other cryptocurrencies or fiat currencies after pricing.
The team is also addressing regulatory and government involvement issues. While cryptocurrencies are currently not regulated by Zimbabwean laws, the team has been in discussions with legal advisors to authorities regarding their proposed solutions. Haslam states that they are definitely cooperating with the government, allocating 10% of the tokens to them and using one-third of the transaction fees for Zimbabwe's infrastructure.
Team leader Laswet Savadye is conducting nationwide activities, educating and recruiting users. He emphasizes the importance of Zimbabweans being able to trust the funds and banks they use, hoping to see Zimbabwe transition to using a robust currency built on blockchain technology.
