The rate of bitcoin to the dollar in Zimbabwe has set a historic high and for the first time reached a mark of $ 7,200. This writes CoinTelegraph.
During trading on Monday, September 25, the bitcoin price on the local BitcoinFundi exchange reached a level of $ 7,200, which is almost 84% more than the value of digital currency on the CoinDesk exchange.
According to CoinDesk at 11:30 Moscow time on September 26, the cost of bitcoin is $ 3,920, which is 0.19% lower than the closing level of the previous day. At the same time, the Zimbabwe exchange shows a rate of $ 6,400 (63% above the normal rate).
According to the publication, such a big difference in the rate of bitcoin on the local exchange is associated with hyperinflation and devaluation of the national currency of Zimbabwe.
Zimbabwe has been experiencing economic problems since 1992 after a drought and a series of failed reforms. During the decade, inflation fluctuated between 20-60% (For example, in Russia, inflation in 1992 was 2508.8%). Land reform in 1999 led Zimbabwe to rising prices and unemployment. Inflation reached 1000% per month. The Kato Institute estimates that the annual inflation rate in Zimbabwe on November 7, 2008 was 516 quintillion percent (516,000,000,000,000,000,000,000,000).
The publication believes that the growth in the use of bitcoin in the country in addition to inflation was caused by the fact that the government limited the flow of cash in and out of the country, and stopped all payments on credit cards. Residents of the country were forced to use bitcoins to make everyday purchases and to repay loans.
Such a big difference in the course explains the growing desire of Zimbabweans to find ways to make financial transactions in the conditions of a ban on traditional methods of holding them.