[2017-11-21] Bitcoin Isn’t Legal, Says Zimbabwean Central Bank Official as Price

[cybersofts]

Bitcoin Isn’t Legal, Says Zimbabwean Central Bank Official as Price Nears $15,000

The Reserve Bank of Zimbabwe says trade and usage of bitcoin for transactions in the country have not been legalized despite a surge in prices and values for the popular crypto-currency.

Bitcoin trade values on the only crypto-currency exchange platform, Golix had surged to $1 million for the month of October. On Tuesday, bitcoin prices on the Zimbabwean bitcoin exchange peaked at $14490 in morning trade on Tuesday against world averages of around $8000.

Regional news blog TechZim reported Tuesday that Zimbabwe’s central bank declared that bitcoin isn’t yet legal in the country. The central bank justified this position, saying it was still carrying out studies into the crypto-currency.

    “In terms of the bitcoins, as far as we are concerned, it’s not actually legal. In Southern Africa, what we have done as regulators, we have said that we will not allow this in our markets. Research is currently on, being undertaken to ascertain the challenges and risks associated with these particular products,” said Norman Mataruka, director and registrar of banking institutions at the RBZ in Zimbabwe.

He said until the Zimbabwean central bank had “actually established and come up with a legal and regulatory framework for them” bitcoins “will not be allowed” in the country. Trade facilitators at Golix had already started to tighten oversight on large volume transactions. Officials said the higher value transactions would require verification of identifications for the traders.

Zimbabwe has also had a massive surge in the price of bitcoin after the country’s military chiefs intervened and restricted President Robert Mugabe to his private residence in Harare last week.

Experts say Bitcoin is now being used to send money out of Zimbabwe as well as to buy goods such as softwares. However, usage of the crypto currency has not yet fully been developed to enable payments for other services such as paying for hotels, travel, and to purchase equities among other services, analysts said.

The political turmoil in Zimbabwe, sparked by Mugabe’s firing of his deputy, Emmerson Mnangagwa nearly a month ago, has seen investors start to ditch the country’s equities market. Others say this has come at a time bitcoin trade in the country is surging on the back of the political upheavals.

Zimbabwe has also continued to suffer liquidity challenges and foreign currency shortages emanating from a low production abase in the country. Bad policies adopted by Mugabe have also been blamed for crippled foreign direct investment inflows.

Source: https://www.cryptocoinsnews.com/zimbabwe-says-bitcoin-not-yet-legal/

[warrior333]

In my opinion it is not logical. I believe that the political situation in Zimbabwe may have an impact on the price of bitcoin in the country but that there was such a difference in price I don't believe. With such a difference in price traders already would have pulled out of Zimbabwe dollars. For those who do not know say that the currency Zimbabwe uses US dollars. So I don't think what they are experiencing large financial problems even during the coup.

[InvoKing]

In my opinion it is not logical. I believe that the political situation in Zimbabwe may have an impact on the price of bitcoin in the country but that there was such a difference in price I don't believe. With such a difference in price traders already would have pulled out of Zimbabwe dollars. For those who do not know say that the currency Zimbabwe uses US dollars. So I don't think what they are experiencing large financial problems even during the coup.

Zimbabwe barely has an economy and people are switching to other ways of payment since their local currency is a messy trashy useless fiat. For those who can afford Bitcoin they will use it.

[aso118]

The military pronounces it illegal, so that the officers can buy it cheaply? This reminds me of the general coming on the state broadcast stating that there is no coup!! Ultimately, what matters is whether people believe inBitcoin or not.

[Signaturan]

In my opinion it is not logical. I believe that the political situation in Zimbabwe may have an impact on the price of bitcoin in the country but that there was such a difference in price I don't believe. With such a difference in price traders already would have pulled out of Zimbabwe dollars. For those who do not know say that the currency Zimbabwe uses US dollars. So I don't think what they are experiencing large financial problems even during the coup.

It is quite logical as the ministers want to exploit you by inflating your money away.

[jjacob]

In my opinion it is not logical. I believe that the political situation in Zimbabwe may have an impact on the price of bitcoin in the country but that there was such a difference in price I don't believe. With such a difference in price traders already would have pulled out of Zimbabwe dollars. For those who do not know say that the currency Zimbabwe uses US dollars. So I don't think what they are experiencing large financial problems even during the coup.

It is quite logical as the ministers want to exploit you by inflating your money away.

That would be true in most countries, but not Zimbabwe. In Zimbabwe, they don't have a currency of their own for the ministers to exploit you. They use US dollars. In Zimbabwe's case, I think the military is trying to establish control over all matters, including monetary policy.

[1Referee]

I think the military is trying to establish control over all matters, including monetary policy.

It definitely looks like so, but I very much doubt that it will change anything in how that country will move forward when things cool down a bit. I obviously hope that I am wrong, but if we look at how things usually go in that part of the world in similar situations, nothing has changed. People still suffer from the same problems, haven't moven a single bit forward financially, etc. In that regard, I expect Bitcoin to remain a safe haven for the people there, regardless of what their central bank official is saying. People there have basically nothing to lose, but only to gain with Bitcoin. It's the only bit of financial freedom they will be enjoying in their entire life, and at the same time an ultimate hedge against their worthless fiat currency.

[rindo]

About 30% of the customers lining to the at La Maison du Bitcoin in Paris are not speculating on the value of the encrypted currency. They are sending digital money to their countries in Africa. To use tarde and hold bitcoin, you just need a mobile-phone. Zimbabwe, where bitcoin's price has soared to double the international rate following the military coup this week, shows Jamie Dimon, Axel Weber and others who doubt the encrypted coins where is the use of Bitcoin in real life and, possibly, its future.