The Actual Problem
What Started in 2007,would go on to pave the way for Zimbabwean economy to adopt Crytocurrency into its daily life.President Robert Mugabe embarked on an Economic Structural Adjustment Programme (ESAP) During the early 1990s. Included in these were land reforms intended to take the land from White landlords and give them to Black farmers.These farmers, however,were inexperienced in managing and farming on such a big scale.
A period of 10 Years from 1999 till 2009 proved to be very difficult for the Zimbabwean economy.The country experienced sharp decline in food production.THE banking sector collapsed, resulting in less capital for farmers.Food Output fell by over 45%, Manufacturing output by 30% And Unemployment rose to an all time High At 80%.
Government's Policies
During the Period mentioned above, The government decided to pump money into the economy , to increase Demand and Money Supply.What the government didn't understand was the problem was not with the Demand in the economy but rather the Supply in the economy.
Zimbabwe Experienced a period of hyperinfaltion. Zimbabwe's peak month of inflation is estimated at 79.6 billion percent month-on-month, 89.7 sextillion percent year-on-year in mid-November 2008.Basically, Money became worthless in the Zimbabwean economy as the government stated to print Greater and greater notes ranging all the way up to 100 Billion Zimbabwean Dollars.
How The Public Took Matters into Their own hands
Zimbabwean Economy slowly started to find new ways to buy and sell.Like some other African Countries, Zimbabwe's population started using electronic payment in foreign currencies . As Bitcoin and other Cryptocurrencies gained popularity, The Public That were aware were very keen on adopting and they did.
Cryptocurrencies are now on the rise and Zimbabwean economy is trying to revive iself with the help of Cryptocurrency.But still due to the informal state of the economy,It will take quite a long time to truly become successful ,