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Felicia Tan
in
Crypto
June 30 07:50

Bitcoin in Zimbabwe reached US$17,000 amidst payment application blocks

Among the blocked applications was a popular among locals service EcoCash, which they use to buy bitcoin.
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On 27 June, the Government of Zimbabwe suspended all mobile payment systems due to the collapse of the national currency. 

Trading on the local stock exchange has also been stopped. In the government it is explained by the intention to prevent a crisis of the national currency - Zimbabwean dollar.
The owners of EcoCash deny any wrongdoing and intend to challenge the block. Only the central bank can ban the service, they say.
However, for millions of Zimbabweans, digital payments are the only way to settle accounts, as it is very difficult to get cash.
Local edition of Bitcoinke reports that EcoCash accounts for 94% of all mobile money transactions in the country. After the service was blocked, the rate of Bitcoin in the country exceeded the market average by 18%. In some offers, it reached US$17,260.
Zimbabwean dollar was introduced in 2019 as a replacement for the then circulating in the country Japanese yen, the U.S. dollar and the British pound. To promote the new national currency, the government has banned the domestic use of foreign currencies. However, due to numerous corruption scandals, the national currency has collapsed. Inflation has reached over 750%.
According to the central bank, in the same year mobile wallets accounted for almost 85% of all transactions and 22.6% of the transmitted value.