Zimbabwe should pay attention to the value of the cryptocurrency and the benefits it could bring to the population. The diaspora in Zimbabwe could pay lower fees to send money to their relatives in the country.
Professor Mthuli Ncube, Minister of Finance of Zimbabwe, recently spoke about investing in Bitcoin. He believes that the citizens of that southeastern African country should buy the cryptocurrency.
That is not the first time that the government official has given his support to cryptocurrencies. In 2019, he urged Zimbabwean citizens to invest in understanding emerging innovations like Bitcoin, as did Switzerland.
Ncube believes that Zimbabwe should invest in understanding these technologies, and central banks often take too long to do so. However, he said that other countries are moving faster in this regard. He mentioned as an example that the Swiss Central Bank is investing and understanding Bitcoin.
In addition, he stressed that Zimbabwe should pay attention to the value of the cryptocurrency and where it is going, just like those countries do. The Minister of Finance of that country is aware of the advantages Bitcoin could bring to the population.
The Minister Reiterates the Possible Advantages of Bitcoin in Zimbabwe
Mthuli Ncube stated that it is beneficial for the citizens of Zimbabwe to use cryptocurrency-based solutions. He argued that these assets contribute to reducing the costs of cross-border remittances.
He was recently in Dubai, where he discussed some solutions to reduce the cost of remittances. He said that he found solutions that could facilitate the sending of remittances by the diaspora.
Ncube explained that the Zimbabwean diaspora includes different ethnic and religious groups that have migrated to other latitudes. They have left their place of origin and have spread all over the world.
According to the World Bank, the diaspora from Zimbabwe spends up to USD 90 million on remittance fees. By using Bitcoin, they could reduce the costs of sending money to their relatives in the country.
Ncube Gets Congratulations on His Comments on Bitcoin
Some have congratulated Mthuli Ncube for making such comments, while others wonder why he went to Dubai. In the latter case, they seek to pressure the Minister of Finance to address the remittance issue.
Flexfintx CEO Victor Mapunga reminded Ncube that Zimbabwe already had Blockchain and crypto companies. For that reason, he recommended that he work with local players instead of foreign ones.
Senator Jopa Sayeyo said that the Reserve Bank of Zimbabwe could consider the cryptocurrency. However, he explained that banks must first stop manipulating the currency exchange rate. He warned that failure to do so would lead to a massive fall in the price of the Zimbabwean dollar (ZWL).
Twitter user Bra Mox responded to Ncube that they need a legal framework to incorporate cryptocurrencies. The banker stressed that he should start with the regulation of Bitcoin.
The increasing relevance of Bitcoin in the world economy has led many governments to think about adopting it. The Finance Minister of Zimbabwe sees it as a solution to reduce the costs of remittances. Zimbabweans living abroad would pay lower fees if they used the cryptocurrency.
By Alexander Salazar
