While Bitcoin is often seen as a way to generate a return on investment, one of the main functions of this innovative currency would easily be forgotten: to be able to act as a decentralized store of value.
Citizens of countries marked by hyperinflation, who see it as a means of securing their wealth, may be worried when the authorities decide to ban the use of this asset altogether ...
Cryptocurrencies: Zimbabwe Prohibits "Issue, Sale, Purchase, Exchange and Investment"
On May 11, many Zimbabwean citizens were deeply upset by the country's central bank decision to ban the possession, trading and transfer of Bitcoin.
While this measure is unlikely to have a significant impact on crypto-markets, it is Zimbabweans who are being deprived of a free and centralized alternative, which could up to now allow them to circumvent the hyperinflation that crosses the country - a country that issues a bill of 100,000 trillion local dollars:
According to an article published by NewsDay, the Reserve Bank of Zimbabwe (RBZ) has also imposed the closure of services offered by financial institutions to Bitcoin companies, stating that they "should stop" these commercial relations within the next 60 days.
Norman Mataruka, Chief Registrar of the RBZ, said in a circular:
"As a monetary authority, the Reserve Bank of Zimbabwe is the custodian of public funds and has an obligation to preserve the integrity of payment systems. "
Mr. Mataruka stated that the 60-day period should be used by banks to terminate any agreement related to guarantees, discounts, registrations, trading or solicited loans through currencies. digital.
The circular also states that this measure is taken in the "public interest" and is intended to protect and safeguard the integrity of the country's financial system.
John Mangudya, the governor of the central bank, said:
"The Reserve Bank of Zimbabwe has neither authorized nor endorsed any person, entity or stock exchange to offer the issue, sale, purchase, exchange or investment in virtual currencies / coins / tokens in Zimbabwe. Scholarships such as Bitfinance, Golix and Styx24 are not authorized or regulated by the Reserve Bank. "
The RBZ decision, which last month issued a circular outlining the risks associated with cryptocurrency trading - citing fraud, hacking and data loss - follows a recent warning from the Central Bank of Kenya. (CBK), who called on the public to turn away from these assets.
In the public interest, really?
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In the context of a global financial crisis, far from the bustling streets of the city of Harare, one or more anonymous creators initiated the world into a digital and encrypted form of currency: Bitcoin. This freely available peer-to-peer payment network operates without any centralized authority.
And in addition to the decentralized approach of the protocol was its deflationary nature, which aimed to offer a different model from that of the traditionally inflationary fiduciary currencies.
While many individuals residing in regions with high inflation - such as Zimbabwe, South Sudan or Venezuela - quickly adopted Bitcoin, which proved to be less risky than the national currency, these countries have repeatedly lashed out at decentralized digital currencies, probably thinking that they were giving back power to their peoples.
It is puzzling why Zimbabwe has justified this measure, which would have been taken "in the public interest" - as the country suffers from unprecedented hyperinflation since the year 2000, reaching a peak in 2008 at 98% daily inflation:
It is therefore normal for citizens to move with billions of local dollars to do their shopping - while the RBZ presents the current financial system as "healthy and secure." For its part, Bitcoin has been able to offer these individuals a way to secure their financial holdings, knowing that their value should not be divided by 10 or 100 when they need to draw funds.
It is this craze for the digital asset that has caused very high prices on local platforms: while the BTC recorded last December a historic record of more than 20 000 dollars, they posted on their side prices over $ 30,000.
Despite this ban, Bitcoin and the main cryptocurrencies are probably the safest choice for Zimbabweans wishing to secure their wealth - especially since no government can really ban their use. But now they will have to show great discretion.
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