New digital currency introduced in Zimbabwe

13 May 2019

graphZimbabwe has recently sought to find alternatives for its currency shortage, having replaced it with the US dollar and introduced several other currencies as legal tender – however, one crypto startup is attempting to offer an alternative tailored to the needs of every Zimbabwean.

As Crypto Briefing reports, Philip Haslam is one of the founders behind crypto startup Zimbocash. He has expressed his favourable opinion of digital currencies, stating that they are an ideal and stable currency choice for Zimbabwe, especially seeing as the government is open to introducing new monetary systems now more than ever.

Haslam explained that Zimbocash, which is only available to Zimbabweans, is particularly ideal due to the fact that it does not require purchasing tokens, but instead gifts tokens to all new users.

Zimbocash’s approach differs from that of other digital currencies, which generally rely on selling tokens prior to anything else. This startup instead believes in first enticing users to adopt its currency, as well as rewarding them for every user they recruit onto adopting the currency too – which is otherwise known as the network effort. This relies heavily on the idea that every new user of a service adds value to that service for other users, and therefore handing out free tokens should attract more users and boost the currency’s value.

Haslam said: “It’s kind of like Whatsapp. If you were the first Whatsapp user, you wouldn’t be able to send a message to anyone. But as more people get added to the network, each additional user adds value to everyone else.”

With that said, restrictions are put in place to ensure users do not dump the tokens on the first day of trading and consequently reduce their value.

Zimbocash is currently working to attract users to its startup through media campaigns and ambassadors. Once having grown its network, it then plans to target the remittance market. Zimbabwe receives $1 billion every year in remittances.

Haslam has high hopes for Zimbocash, stating he believes it will lead transfers between Zimbabwe and neighbouring countries. Despite admitting to many potential challenges his startup is bound to face, Haslam said his team was more than prepared.

“Think big, start small and move quickly.”