In the wake of political uncertainty surrounding a possible coup in Zimbabwe, Bitcoin’s price has soared to over $12,500 USD within the embattled nation.
A potential coup in Zimbabwe that threatens to oust President Robert Mugabe has succeeded in grabbing international headlines today, though a quieter advent has caught the eye of cryptocurrency investors as Bitcoin has managed to soar above the $12,500 USD mark in the embattled nation.
As we’ve reported previously, Bitcoin has managed to cultivate a home within the country – Zimbabwe currently vacillates between using the US Dollar, South African Rand, the Zimbabwean Dollar, and the newly introduced Bond Note – as an attractive, cash-less alternative.
Bitcoin offers a stable economy for Zimbabweans to use as hyper-inflation precludes the easy use of the Zimbabwean dollar, with many investors leveraging the country’s few Bitcoin exchanges as either a store of value or means to transact.
Bitcoin has – at the time of writing – reached values above the $12,500 USD mark on local exchange golix.com, where the premium on the cryptocurrency (which conversely sells for above $7000 USD on most international exchanges) is typically attributed to the difficulty Zimbabwean traders have with regards to accessing international markets.
Zimbabwean-based economist Philip Haslam previously quipped that Bitcoin may be beneficial to Zimbabweans; offering that “The thing about bitcoin is once you import it into the country, you don’t have the problem of the currency eroding and perishing like you have with notes — It’s a system that allows for privatized banking.”
The currency may further appreciate in the days and weeks ahead, as Zimbabwe’s armed forces continue to exercise presence in the country’s capital of Harare.
What are your thoughts? How could cryptocurrencies such as Bitcoin bolster ailing economies? Be sure to let us know your opinion in the comments below!