While attending a business conference with the leaders around the world, Mthuli Ncube, the Finance Minister of Zimbabwe stated that his country has learnt the lesson from its past mistake. Zimbabwe won’t be relying either on US Dollar of any specific cryptocurrency for using them as country’s official currency or currencies. If the Government ever decides to do that then it would no less than a suicide, claimed Ncube.
Zimbabwe’s economy is by far the worst in the world and the Covid-19 crisis had put the final nail in the coffin. The country is fighting against the financial crisis which is there for more than a decade now. The financial condition of the country is the worst of them all. Living standard is the poorest and the public health sector is almost to none, while development and progress are only dreams.
However, these days, Zimbabwe, under the leadership of its Finance Minister, Mthuli Ncube are working tirelessly for making national currency strong. But there is a talk at local and international levels that Zimbabwe should serious consider inducting USD. There are also people within and outside Zimbabwe who believe that Bitcoin can bring about the change in Zimbabwe’s economy. However, the country would need to legalize Bitcoin and then use it like Salvadorans. But to Ncube, both the ideas are foolish and Zimbabwean Government doesn’t want either of them, clarified Ncube.
Ncube was of the view that instead of looking at alternatives, Zimbabwe should focus on its national currency i.e. Zimdollar. He said that they are working hard in strengthening Zimdollar and hoping some positive results.
The Finance Minister of Zimbabwe also happened to attend a seminar which was held for budgetary discussion in Victoria Falls. During seminar Ncube suggested that since Zimbabwe has started to rely on national currency, there has been a significant value increase in Zimdollar. Therefore, it would be ridiculous to even rethink about re-dollarization, said Ncube.
Ncube explained to the Zimbabweans that they had once adopted American dollar as their national currency. However, the result was there were hundreds of people lined up outside the banks waiting for their turns. Acute deficit in terms of foreign currency was witnessed and, above all, there was deflation. All of these crisis was because of one mistake i.e. dollarization. Zimbabweans should learn from their past mistakes or the dollarization would be nothing more than suicide, stated Ncube.
As regards adopting crypto as national currency, Ncube said that Zimbabwe simply cannot afford to do so. Innovation and technology is on priority agenda but the innovation comes later. First and foremost, Zimbabwe would need to come out of the decade old financial crisis. The challenge can only be faced when Zimbabwe will have a mature national currency.