- The government of Zimbabwe is discussing the use of Bitcoin as legal tender.
- The government is looking at both the benefits and risks that the adoption of Bitcoin could have.
Whatever happens in the future, El Salvador will always be marked in the history of Bitcoin as the first country in the world to declare the leading cryptocurrency a legal tender. This means that any transaction with BTC can be carried out in the Central American territory and merchants are obliged to receive it.
This novelty generated supporters and critics, although this did not change the position of President Nayib Bukele. The highest authority, who perceives himself as progressive, believes that having been a pioneer can mean a differential for future investors. For the moment the bet has been successful and at the beginning of November it announced that 20 schools and a hospital will be built with the profits obtained with the cryptocurrency.
As much as El Salvador may have been the first, it will not be the only one (although at the moment it is). Paraguay, Panama and Brazil are three countries that have shown interest in legislating Bitcoin and a new nation appears in the crypto trend: Zimbabwe.
Zimbabwe analyzes Bitcoin
The African country, with a population of close to 15 million and the world’s 129th lowest GDP, is investigating the “growth and risks associated with cryptocurrency as an asset.” just as the site describes Newsbtc. The government led by Emmerson Mnangagwa, who overthrew Robert Mugabe in 2017, welcomes following the example of El Salvador.
Africa has evolved in terms of Bitcoin adoption and has more and more users. The claims of Zimbabweans are being heard: the people want cryptocurrencies to be legal. This was confirmed by Colonel Charles Wekwete, who is part of the Ministry of Defense and assured that “the use of Bitcoin as legal tender is being discussed.”
With regard to adoption, the local government sees “positive and negative aspects”. The good news would be greater inclusion and becoming an attractive pole. And the bad ones? According to Wekwete, Bitcoin could contribute to “money laundering, illegal cross-border transfers, facilitating illicit actions with illicit cash flows“Zimbabwe is working to try to avoid these complications.
National Development Strategy 1
The progress of the African country towards its adoption is slow, but progressing. They are currently consulting experts to see if the measure could work in the short term. The Mnangagwa government is following the so-called National Development Strategy 1 as far as the digital economy is concerned.
“The strategy will foster a connection between existing companies and the government to jointly develop the digital economy“, expressed the authorities of the country.
According to market analyst Chainalyisis, digital asset trading in Africa is booming and Zimbabwe could become a benchmark in the region. Currently the most active country with cryptocurrencies is Nigeria. Even Statista data published in June that 32% of Nigerians traded virtual money.
El Salvador saw the opportunity in a desert field and made the most of it to become a global trend. Zimbabwe, seeing these results, is betting to follow the same path. Will it be the next?
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