Cryptocurrency Demand for Bitcoin in Zimbabwe surges as military moves in to seize power

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Shortage of hard currency has caused a high demand for Bitcoin in the country

Bitcoin has seen a 10% rise on Zimbabwe’s Golix exchange on Wednesday following the military brouhaha in the country.

The price of the cryptocurrency in the Southern African nation jumped as high as $13 499, almost double the rate at which it trades in international markets, according to prices cited on Golix’s website.

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Shortage of hard currency has caused a high demand for Bitcoin in the country.

The Golix exchange has made transactions of more than $1 million in the past 30 days compared to a $100,000 for the whole of 2016.

In 2009 hyperinflation recorded in the Zimbabwe forced the country to adopt the U.S. dollar and South African rand, among others, as its  legal tender

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Golix, an unregulated platform that also trades other cryptocurrencies, has been in operation since 2014. Prices for Bitcoin are set by supply and demand, according to Taurai Chinyamakobvu, co-owner of the exchange. Sellers are paid in U.S. dollars deposited electronically, which can only be converted at a steep discount on the black market.

 

 

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