P2P bitcoin trade is surging in Zimbabwe via mobile exchange platforms like Ecocash, despite recent government efforts to curb the use of competing currencies locally. As of June 24, the reinstated Zimbabwe dollar (formerly RTGS dollar) is now the only recognized currency in the economically embattled southern African country. Finance minister Mthuli Ncube sees the move as a way to pull in the reins on re-dollarization, and implement greater controls and stability. Others see the new currency as a disastrous decision paving the way for continued hyperinflation.
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The RTGS Dollar
Since abandoning the astronomically hyper-inflated Zimbabwe dollar in 2009, the Reserve Bank of Zimbabwe had switched to an international currency basket in an attempt to stabilize the economy. In February of this year, central bank chief John Mangudya announced the implementation of the RTGS (Real Time Gross Settlement) dollar, a new currency pitched as being at 1:1 parity with the USD.
Although the move to RTGS was ostensibly to provide greater balance to the economy, and restore Zimbabwean economic sovereignty, not everyone accepted this move as sound, or even as being well-intentioned.
Many Zimbabweans have significant savings and hedges in the form of U.S. dollars, and the sudden move was a severe economic blow. According to Zimbabwe opposition leader Nelson Chamisa:
The monetary policy statement is a disaster that will erode livelihoods, plunge the nation into darkness and uncertainty.
Zimbabwe Dollar: A New Version of an Old Currency
Now the RTGS dollar is old news, and as of late June, a revamped version of the Zimbabwe dollar has returned, effectively replacing and swallowing the RTGS. In a bold
