Source: financialgazette.co.zw
id="attachment_150619" style="width: 310px" class="wp-caption alignright">class="size-medium wp-image-150619" src="http://www.financialgazette.co.zw/wp-content/uploads/bitcoin-1-300x169.gif" alt="The premium on the digital currency in Zimbabwe can be attributed to the discount on the local currency." width="300" height="169" srcset="http://www.financialgazette.co.zw/wp-content/uploads/bitcoin-1-300x169.gif 300w, http://www.financialgazette.co.zw/wp-content/uploads/bitcoin-1-768x432.gif 768w, http://www.financialgazette.co.zw/wp-content/uploads/bitcoin-1-1024x576.gif 1024w, http://www.financialgazette.co.zw/wp-content/uploads/bitcoin-1-720x405.gif 720w" sizes="(max-width: 300px) 100vw, 300px" />

class="wp-caption-text">style="color: #0000ff;">The premium on the digital currency in Zimbabwe can be attributed to the discount on the local currency.

style="color: #000000;">MAINSTREAM cryptocurrency, Bitcoin, is trading in Zimbabwe at nearly double its price on international exchanges, driven by a currency crisis in the southern African country.id="more-150618">/> style="color: #000000;">Bitcoin is a decentralised digital payment system which works without a central repository or single administrator. /> style="color: #000000;">Yesterday, Bitcoin traded for as high as $11 650 on the local cryptocurrency exchange, Golix (formerly Bitcoinfundi). /> style="color: #000000;">This represents a premium of more than 75 percent to the price of $6 600 recorded on American mainstream cryptocurrency exchange, Coinbase, yesterday. /> style="color: #000000;">The premium on the digital currency in Zimbabwe can be attributed to the discount on the local currency./> style="color: #000000;">Although Zimbabwe dollarised in 2009 after its currency was ravaged by hyperinflation, the country effectively now has a new currency, electronic bank balances which are heavily discounted against the greenback./> style="color: #000000;">Since early 2016, Zimbabwean firms and households have increasingly struggled to make international payments due to a biting foreign currency crisis. /> style="color: #000000;">Of late, this has given rise to the use of Bitcoin to settle cross-border transactions./> style="color: #000000;">This comes as the country’s central bank has effected stringent controls on foreign currency movements across the borders. /> style="color: #000000;">Many Zimbabweans are using Bitcoin to pay for motor vehicle imports, as some Japanese used car traders accept the cryptocurrency for payment./> style="color: #000000;">Research suggests that Bitcoin adoption is more widespread in countries that have suffered financial crises such as Zimbabwe and Venezuela. /> style="color: #000000;">In 2014, economic historian Dr Garrick Hileman of the University of Cambridge ranked Zimbabwe third on a Bitcoin Market Potential Index, which he designed to assess the condition of adoption for Bitcoin, he ranked Argentina and Venezuela first and second on the same index. /> style="color: #000000;">Based on the average price during the day, the order book on the local exchange early afternoon yesterday had bids of Bitcoin volumes amounting to about $29 000 and offers of the same amounting to about $16 000. /> style="color: #000000;">Total turnover of Bitcoin on the local exchange from mid-day Tuesday to mid-day yesterday amounted to about $90 000. The turnover for the month of October amounted to $1,2 million./> style="color: #000000;">Meanwhile, Bitcoin reached its highest price ever in exchanges across the world (outside Zimbabwe) as the digital currency traded for more than $6 600 on Coinbase. Bitcoin has gained $5 790 or 799,84 percent since November last year./> href="mailto:newsdesk@fingaz.co.zw">newsdesk@fingaz.co.zw


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