Global cryptocurrency exchange, Bithumb listed a Zimbabwean cryptocurrency called ZimboCash (ZASH) last week. In this article, we explore what the project is about and the impact it seeks to bring in the inflation hit country.
From the information available about the project, ZimboCash is “developing a national decentralized currency network in Zimbabwe.”
The project aims to provide a sound and fixed-supply alternative to the Zimbabwean national currency, which is seeing bad inflation during the pandemic.
4.5 billion ZimboCash has been created and is being distributed to all Zimbabweans that sign up. Users are required to sign up on the site, show they are based in Zimbabwe to receive their share of the currency.
Users who want a bigger allocation can earn more ZimboCash by referring new people to the platform.
The cryptocurrency is built on a Proof of Stake (POS) consensus algorithm that solves possible centralization issues by ensuring no single computer in the network controls the supply of money. ZASH is built on the TRON blockchain using a TRC-10 contract.
Rewards for users halve every three months, and at the time of writing, users earn a reward of 3, 125 ZASH. The next halving is scheduled for June 30, 2020.
After the last quarter of 2020, the distribution model is set to be placed at a fixed rate. According to the whitepaper of the project, anyone who will sign up from December 31, will receive 200 ZimboCash (ZASH) until the number of tokens available has been fully allocated.
The Zimbabwean Dollar Hits 500% Inflation – ZimboCash To The Rescue?
The Zimbabwean dollar is at 500 percent inflation, which is getting worse during the Covid-19 crisis. The government is currently insolvent with little borrowing capacity, making it hard for the state to salvage the situation.
The team behind ZimboCash believes a localized cryptocurrency project like theirs can solve the issues in Zimbabwe.
In a recently released statement, Philip Haslam, head of communications and economics at ZimboCash, shared some insights on how COVID-19 might have affected the Zimbabwean economy.
“The impact of the coronavirus pandemic has been catastrophic for the Zimbabwean financial system. The government has admitted that it is going to print money on a large scale to fund itself, which could push the country into hyperinflation,” – he said.
The Zimbabwe dollar was already collapsing with 500% inflation before this crisis dealt a debilitating blow. We believe that Zimbocash is perfectly positioned to solve this problem by fixing the amount of money in the country using blockchain technology. Our aim is to provide sound money.
Further, Philip Haslam likened ZimboCash to bitcoin, in the sense that ZASH is fulfilling the dream of P2P money.
“In our view, Zimbocash is easily the most exciting new cryptocurrency project in the world right now. We are fulfilling the dream of bitcoin — we’re developing a peer-to-peer payments platform and facilitating on-the-ground trade in a country,”
With worse effects expected due to the current state of the economy, it will be interesting to see how much impact this project could make in Zimbabwe.
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