If you’ve been living in Zimbabwe over the past few years or even just visited there is one thing that resonates throughout the country. We are a digital economy. This is not by design but actually a result of other issues that I would rather not remind fellow Zimbabweans.
Anyway, because of the cashless nature of our economy, it is always interesting when a service provider promises to solve the cash issues. The usual response to such services is usually “HOW?”
How does a crypto-based solution sound to you?
Enter Kuvacash… The startup is trying to implement a cryptocurrency solution that ensures the cash struggles become a thing of the past. KuvaCash is a Dash-record $550K USD undertaking, funded directly by the Dash treasury via its unique governance model, and aims to provide Zimbabwe with its first-ever peer-to-peer localized cryptocurrency payment service for anyone with a phone-number-based messaging system.
The initial launch will cater for agents that will facilitate infrastructure on the ground, ensuring there are physical kiosks for locals who seek to top up their Kuvacash accounts or cash-out to USD. The timelines of this initial launch are not known publicly so we are not sure when this will be happening.
The service will come with a free mobile app which enables them to:
- Exchange to and from USD
- Mobile payments
Kuvacash will be backed by Dash – a digital currency for payments- which is strange considering what’s unfolded in the crypto scene here in Zim over the past few weeks. You’ll probably remember the Reserve Bank banned cryptos and then warned the public against trading. (Golix went on to take the RBZ to court and win the case so it seems cryptos are welcome again).
Even though it seems the RBZ is not a big fan of they seem to be ok with Kuvacash…
RBZ already licenced Kuvacash
Kuvacash secured an ADLA money services licence from the RBZ back in April. ADLA stands for Authorised Dealers with Limited Authorities and with this licence, operators (such as Kuvacash) are allowed to complete transfers which include cash-to-cash money transfers, international wire transfers, international mobile transfers and international Automated Clearing House (ACH) transactions, and mobile companion prepaid card transfers.
It’s a bit confusing that Kuvacash is licenced yet their business uses cryptos as the underlying technology. This may mean the RBZ had been planning to embrace cryptos and then they had a sudden change of heart for some reason but it seems Kuvacash might actually be safe from all the chaos surrounding RBZ and their outlook on Crypto.
Is the crypto issue really resolved?
We are not sure how the central bank will respond having lost the court battle against local crypto exchange Golix but for now, it seems the coast to resume crypto activities is clear.
We are not yet sure when this service will actually be going live in Zim but they were targeting the second quarter of this year. This means they still have one month to go.
The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About RBZ