Zimbabwe could adopt Bitcoin as legal tender after El Salvador

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El Salvador’s adoption of Bitcoin has opened the door for more adoption. However, the first country to do so did not find it easy. Many doubts and criticisms were directed at Salvadoran President Nayib Bukele.

Some people have said he influenced the legislature to approve the move. Other critical financial analysts have even predicted a negative influence on the country’s economic situation as a result of his actions.

The country has completed the move and now uses Bitcoin for financial transactions. In addition, the president continues to accumulate BTC whenever there is a drop in prices.

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The second country that could make such a bold move is Zimbabwe. They study the growth and risks associated with cryptocurrency as an asset.

Will Zimbabwe become the next El Salvador?

For now, the country is looking at the demand rate among citizens. In addition, they support regulations that financial watchdogs have been insisting on for some time. Additionally, Zimbabwe sees crypto as a way to further develop the country.

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Now that many citizens are demanding crypto, the government is seriously considering this option. They leaked this information through one of their local news outlets.

The news also revealed that the country was already discussing the use of Bitcoin as legal tender – the Perm Sec Brig. Colonel Charles Wekwete confirmed this information. He also said that blockchain offers both advantages and disadvantages.

The negatives he highlighted were money laundering, illegal cross-border transfers, facilitation of illegal actions with illegal cash flow, etc.

However, due to these risks associated with blockchain, many authorities are on the verge of developing regulations that can curb them. In addition, the rules will protect the interests of consumers and Zimbabwe’s financial future.

So far, the country has not yet declared anything. They are simply consulting with experts to find out if the move will work. But the government is following the National Development Strategy 1, which teaches the digital economic system.

The strategy will foster a connection between existing businesses and the government to jointly develop the digital economy.

El Salvador sets the tone for Bitcoin

Since Nayib made the bold move amid criticism, other countries have considered the use of Bitcoin in their economies.

Lots of negative comments about the move, and some are still going on. However, the first country to adopt Bitcoin does not appear to be backing down at all.

BTC price gears up for a bull run | Source: BTCUSD on TradingView.com

In the latest news, the president is even leaking plans to build a hospital and 20 schools using their Bitcoin earnings.

With all of this, industry players see Africa as a good ground for testing cryptocurrency. Additionally, the crypto market in Africa continues to grow, according to blockchain company Chainalysis.

Image courtesy of the BBC, chart from TradingView.com

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