Zimbabwe’s Finance Minister Outlines Benefits of Adopting Cryptocurrencies in the Payments Sector
Mthuli Ncube, Zimbabwe’s finance minister, voiced support for cryptocurrencies following a visit to the DMCC Crypto Centre in Dubai. He praised the practical utility of crypto-based solutions, noting that they could significantly reduce the cost of remittances from abroad.
“I visited the DMCC CRYPTO CENTRE in Dubai, which is a fascinating incubation hub for crypto and payments solutions. I came across solutions that could lower the cost of diaspora remittances,” the minister wrote on Twitter.
While many observers highlighted the potential benefits Zimbabwe could gain from adopting cryptocurrencies, some social media users urged caution. One commenter argued that local banks have a history of manipulating forex markets and warned that a sudden shift to cryptocurrencies might trigger a collapse of the Zimbabwean dollar.
“When banks stop manipulating the exchange rate, then maybe RBZ could consider cryptocurrencies. Otherwise this will lead to a huge crash in the ZWL.”
It also appeared that Minister Ncube might not have been fully aware of developments already occurring within Zimbabwe. Members of the crypto community quickly pointed out that local startups were already building the kinds of solutions he praised. Flexfintx CEO Victor Mapunga reminded the minister that such firms already exist in the country.
“We already have blockchain and crypto companies in Zim, such as @Flex_Tx, working with local players.”
Techzim reported that the minister seemed uninformed about the state of the local crypto industry, questioning why he sought solutions in the United Arab Emirates when Zimbabwe already had startups like Zimbo Cash, Uhuru Wallet and Dystater. These companies were offering faster, cheaper crypto services to simplify cross-border remittances.
Since his appointment around 2018, Ncube has been an outspoken advocate for cryptocurrencies. He has promoted the use of digital assets to support Zimbabwe’s struggling financial system. At the time, he also suggested that Zimbabwe could follow Switzerland’s lead in developing crypto-friendly policies.
Emphasizing the importance of innovation, the minister noted that central banks often lag behind in adopting emerging technologies. He pledged to lead the Reserve Bank of Zimbabwe in establishing a crypto unit tasked with investing in and studying Bitcoin. According to Ncube, such a unit would help major domestic banks better understand digital assets.
Adopting cryptocurrencies could potentially improve Zimbabwe’s economic stability. As stores of value, some cryptocurrencies might help counter the extreme inflation and economic turbulence the country has experienced, provided such measures are implemented thoughtfully and with proper safeguards.