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Zimbabwe’s only Crypto Exchange Aims for a National Digital Revolution

Last Updated June 14, 2024 8:42 AM
Stephen Samuels
Last Updated June 14, 2024 8:42 AM

Cryptocurrency exchanges currently serve as the ideal gateway for entry into the ecosystem and therefore the designated channel of adoption into the mainstream. The effect of these exchanges in the financial solutions industry is obvious in a number of areas. Payments and clearance, remittances, operations and several other aspects have experienced one form of intervention or the other as a result of crypto implementation through exchanges.

It All Goes Through the Exchange

In the current stage of the industry, the numerous opportunities that abound are accessible through these exchanges. For instance, the speculative market that is mainly responsible for the price fluctuations and increasing trade volumes are traded on exchanges. Beyond that, the alternative to traditional financial systems being offered by cryptocurrencies are the major reasons behind the several political and institutional interventions being experienced lately in the industry.

The reality is that there is a whole new financial ecosystem with several different aspects that wouldn’t have been possible without the gateways created by the exchanges. So far in 2018, the ICO industry alone has consistently returned over $1 Billion revenue every month. This wouldn’t have been possible without the role played by these exchanges that provide entry opportunities to newcomers in the industry. In order to participate in these ICOs and other crypto denominated opportunities, investors must first convert their fiat currencies to the denominated cryptocurrency (mostly ETH or BTC). This is where the crypto exchanges play an important role by offering the conversion opportunity. Same applies when converting from one cryptocurrency to another or from crypto back to fiat currencies.

The Irony of Necessity

While more financially established nations and societies may boast of various alternative routes of entry into the emerging market of cryptocurrencies, the story isn’t so for the less developed nations. Ironically, it is these less developed nations that even need the alternative cryptocurrency opportunities more. This is due to the absence of stable financial solutions infrastructure and unstable economic processes, as reflected by most of their national currencies.

The role of Golix in Zimbabwe as its only cryptocurrency exchange is indeed significant especially with the country’s recent history of mainstream financial turmoil. The exchange steps in as an alternative to the almost hopeless situation that the country was plunged into with its record-breaking hyperinflation of the past decade.

Following the hyperinflation of 2008, Zimbabwe adopted the US Dollar as its own local currency. This meant that the country’s central bank could no longer print currencies like it usually did, thus the nation relied on imported cash from the US. Soon enough, Zimbabwe’s financial problems moved from the over-availability of currency to insufficiency of notes to go round. This situation gave rise to various other multiple complications that included selling dollar notes for much more than they are really worth.

Beyond Boundaries

Such a situation as described above automatically required a financial system that stretches beyond the direct influence of already twisted local institutions. Anyone could assume that cryptocurrencies couldn’t have arrived at a better time than now for the Southern African nation. However, this had not been the case until the intervention by Golix  who currently stand alone as the only indigenous cryptocurrency exchange operating in Zimbabwe, opening up new financial stability opportunity for the citizens.

Golix may not have achieved a high liquidity due to the low level of awareness and citizen participation. However, it is normal to expect a relatively high demand since everyone runs to the same source for supply. This explains the high premium level recorded in Bitcoin trading as observed in Zimbabwe.

It’s All About Participation

But then, as the company makes effort towards establishing a robust crypto ecosystem and vibrant marketplace in Zimbabwe and beyond, the team continues in participating in activities that would enhance this development. For instance, Golix team members are involved in the national discussion on the country’s readiness for the digital revolution, and also its participation in the TOKEN2049 conference holding in Hong Kong is also a move to establish partnerships that will benefit both the nation and region as a whole in the long run.

No matter how popular the knowledge of cryptocurrencies and digital revolution becomes among any people and within a region, the intrinsic value that it offers can only be achieved through direct participation. Zimbabwe as a nation and the entire African region is ripe and due for this revolution, but an important aspect of this process is viable gateways.

With the activities of Golix so far and the developments that will follow, it is expected that the days of extreme financial instability in the southern African nation will soon be over as the people will have the opportunity to directly plug into a global financial system that knows no bounds.