Zimbabwean Minister Says Cryptocurrency-Based Solutions Could Reduce Diaspora Remittance Fees – Fintech

Zimbabwean Finance Minister Mthuli Ncube has once again addressed the potential benefits of using cryptocurrencies. In new comments made shortly after visiting the DMCC Crypto Center in Dubai, Ncube raises the possibility that the country could use cryptocurrency-based solutions to reduce the cost of transferring funds across borders.

Understanding cryptocurrencies

Before these comments on cryptocurrencies, Ncube previously urged Zimbabwe is “investing in understanding emerging innovations like Bitcoin.” At the time, Ncube, who had just been appointed finance minister, called on Zimbabwean authorities to emulate countries like Switzerland, which he said were “investing in and understanding Bitcoin.”

However, in his recent positive comments on cryptocurrencies, Ncube said:

I visited the DMCC CRYPTO CENTER in Dubai, a fascinating incubation center for cryptocurrencies and payment solutions. Came across solutions that could reduce diaspora transfer fees.

While some in Zimbabwe's crypto community on Twitter applauded Ncube for such comments, many others are not amused. Instead, they ask why it took a tour of an incubation center in Dubai to get the minister to address the issue.

Still others like Victor Mapunga, CEO of Flexfintx, are quick to remind the minister that Zimbabwe already has enough blockchain and crypto start-ups. Responding to Ncube's tweet, Mapunga wrote:

We already have blockchain and crypto companies in Zimbabwe like Flexfintx. Collaborate with local players.

Mixed reaction to Ncube's comments

Meanwhile a Test report by Techzim concludes that the minister who tweeted about the DMCC Crypto Center immediately after the tour is actually unaware that there are already start-ups in Zimbabwe offering similar solutions. The report then lists some of the blockchain startups that are already offering faster payment solutions and low-cost, cross-border remittance services.

However, not everyone agrees that crypto is a solution to the country's currency woes. For example, Twitter user Senator Jopa Sayeyo wrote:

“If banks stop manipulating the foreign exchange rate, then perhaps the Reserve Bank of Zimbabwe [RBZ] can consider cryptocurrency. Otherwise there will be a massive crash in the ZWL [Zimdollar].”

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