The hidden reason why Zimbabwe is in hyperinflation
Hi ZIMBOCASH Family
Phew, what a ride the last month has been. We’ve just hit 21 500 subscribers — the community is growing. If you’re new here. Welcome. We’ve added more than 8 000 subscribers since our last fireside chat and it’s becoming quite a substantial community.
Our sign-up graph at the end of last month was as follows:
It followed a great roadshow that we had in Zimbabwe. It was wonderful to meet many of you. Here are some pictures of the various groups that attended the courses.
Current state of Zimbabwe’s hyperinflation
As we write, the fires of hyperinflation are burning in Zimbabwe. If you want fuel, you have to queue for half a day. Prices are rising on a daily basis — and those on fixed incomes (most people) are becoming completely impoverished. The Zimbabwean way of life is deteriorating rapidly and there are very long queues for people applying for passports.
All this destruction has one main cause — money printing. The unfortunate reality is that as money printing increases, the pain will only increase.
It’s not just any money printing… It’s digital money printing.
Most of the money in Zimbabwe is digital money (i.e. RTGS) via Ecocash/OneMoney. The RBZ doesn’t want people to trade in cash so they do not make that available, hence people call these money shortages. But what is happening is that the RTGS money is being increased substantially (i.e. digital money printing — which has the same effect as normal money printing). This is the reason why there is a premium that people pay for actual cash in hand — although this is also devaluing in US dollar terms.
Money printing puts pressure on suppliers and producers because they are being paid with money that is made from thin air. As the cost of supplies to businesses increase faster than sales prices can rise, it puts companies out of business. The only way to solve this issue is to establish a sound-money system.
The good news
ZIMBOCASH is a system where the supply of money is fixed. We are committed to making it free for people to sign-up and then for everyone to participate in the network as it is established. Effectively, we’re creating the a decentralised currency system in Zimbabwe. It’s a system where the supply of money is fixed and is allocated to everyone in the country.
Update on the ZIMBOCASH IT development
We are currently developing the wallet IT infrastructure needed — increasing the security appropriately. We should be launching the updated infrastructure within the next few week. Our target is to launch the token by the end of December. We will, of course, need to then go through the process of listing the token on an exchange which should take a further 3–6 months.
We received approval from Facebook to advertise. Cryptocurrency advertising on facebook was previously not allowed. We’ve started a process of advertising online. Our goal is simple — we want to grow a massive network.
Key links for further reading
- If you have questions, please read the ZIMBOCASH Blueprint here.
- If you want to understand how ZIMBOCASH has value, read our fireside chat dealing with this.
- If you want to apply to be a ZIMBOCASH ambassador, you can do so here.
- Check out your latest balance of ZIMBOCASH here.
And, if you are a citizen or resident of Zimbabwe and would like to sign up for allocation of ZIMBOCASH, go here:
