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ZIMBOCASH Lists Cryptocurrency Token, Wants To Be Alternative To ZW$

Earlier this week, ZIMBOCASH – a local decentralised cryptocurrency- listed their token ZASH on Bithumb Global (a cryptocurrency exchange headquartered in South Korea).

In marketing material, ZIMBOCASH is marketing the ZASH token as a replacement alternative to Zimbabwe’s flailing Zimbabwe Dollar. A total of 4.5 billion ZASH tokens have been created with 950 million currently in circulation.

The Zimbabwe dollar was already collapsing with 500% inflation, before this crisis dealt a debilitating blow. We believe that ZIMBOCASH is perfectly positioned to solve this problem by fixing the amount of money in the country using blockchain technology. Our aim is to provide sound-money.

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Philip Haslam, Head of Communications at ZIMBOCASH

I believe Philip’s comments about ZIMBOCASH being perfectly positioned to solve the Zimbabwe’s economic turmoil are a bit premature. We reached out to ZIMBOCASH to understand where Zimbos in possession of the ZASH token will be able to use it and Philip explained to me that they are developing that network and expect “organic use of the ZASH network to grow as the currency environment deteriorates in the country.”

Why list with Bithumb?

For ZIMBOCASH, listing with Bithumb offers the digital currency an opportunity to start making the ZASH token more valuable;

Our first step in establishing value is in getting it listed on an international exchange (Bithumb Global), where there is a market of buyers and sellers. On the basis that there is value – derived from a market price – it can become something that is used in trade

Philip Haslam

Security fears

It is important to note however that Bithumb the exchange in question has been hacked a number of times;

Hurdles

A concern I had after going through ZIMBOCASH’s marketing material was how they were going to communicate the concept of digital currencies to the ordinary Zimbabwean – something they’ll have to do if ZASH is to become a compelling alternative to the Zim dollar.

Philip explained that they have been doing some work on that front but believes ultimately “the pain that people experience in a collapsing monetary system will cause people to naturally find alternatives that work.”

Right now the clearest incentive to get the token is the fact upon signing up for the token you’ll get 3125 tokens. The issue with that is the value of those tokens will depend largely on the network in which you can use them. If there’s nowhere to use them 3 or 4 months down the line – are they valuable?

The elephant in the crypto-shaped room has been regulation or lack thereof. Interested parties would want to know what guarantees there are that the tokens would be safe. If they get the token, will ZIMBOCASH turn out to be another Golix? The expectation is that it won’t be a problem since they are currently not regulated locally and not making use of local banks at the moment:

We are not operating through the banking system in Zimbabwe. There is no “cash-out” or “cash in”. Zimbabweans are allocated the token directly by signing up at our website www.zimbo.cash. There is no charge for signing up. It is similar to signing up for Facebook.

Philip Haslam

Cryptocurrency and volatility

For those who have fears regarding volatility, Philip explained that volatility is to be expected with any currency however they belive that as their network grows stability will increase alongside;

There may be volatility in the price – however, all currencies have some level of volatility. Ultimately, as a network of scale grows, the price is likely to become more stable. This is why a reference price on a market is used in trade.

However, with Zimbabwean history, people are used to changing their prices to the market rate. With the current system, people need to mark their prices to a market rate regularly. Our concern isn’t what the price will be – our concern is that there is a price. If we get a price, we would have added value to a whole lot of Zimbabweans who have been allocated ZIMBOCASH, who can use it in daily trade.

Philip Haslam

That has been one of the biggest knocks when it comes to cryptocurrencies. The lack of centralisation seems to come at the price of security and accountability when things go wrong.

Distribution

At the time of writing ZASH is being distributed solely via internet channels (Bithumb and the ZIMBOCASH website). If ZIMBOCASH is to realize their dream of dethroning the ZW$ as the local currency that’s another aspect they’ll have to improve to ensure that the Zimbabweans who aren’t on the internet are also included among those who can transact.

Once you have the currency where will you be able to use it? Right now beyond trading, your options are limited at the time being. In future, ZIMBOCASH will be more useful;

Ultimately, we would like to see people being able to pay for imports denominated in ZIMBOCASH. This last step would require a very liquid international exchange where there isn’t price slippage when there is a cash-out. This is something that needs to develop over time.

Philip Haslam

Update: An earlier version of this article claimed that ZIMBOCASH was looking to replace the ZW$. This was inaccurate and the intention of ZIMBOCASH is to offer an alternative, NOT a replacement. We apologise to ZIMBOCASH and our readers for the misinterpretation.


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16 thoughts on “ZIMBOCASH Lists Cryptocurrency Token, Wants To Be Alternative To ZW$

  1. Dead before it started.

    With sweeping RBZ control on the flow of money, using the platform would be suicide

    You can’t seriously launch such a thing under the current conditions in the market.

    It would be responsible to warn people to hold onto their money.

    1. Hi are you familiar with how crypto works? if so you would know the market conditions are very favoruable and they have been for some time. Unless you are pro inflation. Do advise when are the conditions ripe for such and I see you haven’t been updated on the governments push towards regulations and interest on fin tech solutions. Also no one is paying anything have a look at the white paper first.

      1. You totally missed my point

        This has played out before with Golic

        They were fortunate enough to operate for a while before attracting RBZ attention.

        You guys chose to operate just when RBZ is enforcing harsh controls on Ecocash, which is closer to fiat than crypto (i.e. you). A crypto initiative would stand even less of a chance under the current circumstances.

        Any activities you perform under crypto are guaranteed to die, because big old RBZ will crash hard on you, more so now.

        So people may read the white paper, celebrate you and all that, but they should be **warned** that it may easily come crumbling down and may lose crypto held with you.

        Golix isn’t a fragment of people’s imagination

  2. No where in the blueprint does it say anything about replacing the zimdollar please share where you saw this and highlight. This is misleading.

  3. I’ve been following them for a while. They don’t want to replace the zimdollar. They want to be an alternative currency.

  4. We have read the above article and we feel that there are some inaccuracies. We have been clear in all our communication that we are not trying to replace the Zimbabwe dollar. We have some concerns regarding the sustainability of the current system with the money printing taking place. Rather ZIMBOCASH is an alternative, like bitcoin which Zimbabweans can benefit from. We are trying to provide solutions to fellow Zimbabweans with a system that does not undermine the existing system. We are at an exploratory stage and would welcome discussion regarding regulation. We also highlight that it is free for Zimbabweans to use and access the system. No-one pays any money to use the system. The exchange buyers are international crypto investors who buy from Zimbabweans in the secondary market.

    1. Zimbocash has never and will never want to replace the zim dollar. If you had followed them from the start you would have known their true intention. When did alternative and replace become the same. May you kindly get your facts right before publishing because not only is this misleading but a lie. Personally i believe its a good project. You can even go to ZBC and ask for all the recordings of the interviews they did with them and you will see that your story is biased

  5. I sense that the writer was being intentionally deceitful. Those of who have been following ZIMBOCASH know that they stress the message that they are not anti Government, they do not want to replace the Zimbabwean Dollar (Bond note/RTGS). The ZIMBOCASH team in al the roadshows they have done around the country, they always expressed willingness to work with the government.

    They have also been on several ZBC platforms. Which confirms that they have nothing against the government.

    And Farai Mudzingwa, please when you write articles, do not twist facts and misrepresent, it is unethical. We love TechZim, it is our ‘go to’ of all things tech, but you just disappointed me.

  6. I was eyeing behind Zimbocash (ZASH)since back, never said it’s intended to replace the national currency but simply to be used alternatively.

  7. Wow this is very disheartening. I have followed Techzim for a while and remember the first post made on zimbocash and now to see this its just appalling. We have never been transparent throughout and have never said anything about replacing the Zim dollar. Also regarding exchanges there is a whole process that is involved which you don’t seem to fully understand especially when you are Zimbabwean its not like shopping in pick n pay there is so much involved and its the first of many. Anyways there is nothing wrong when you are against a project everyone is entitled however speak facts so that you remain credible. This article did not do that. Kindly reconsider doing this with the correct information. Best regards

  8. I like the way the article is being contested by persons who evidently have interests. But, the only thing they contest is replacement Vs alternative. No mention of guarantees to users that it’s not another Golix, nor another ponzi-coin. Though I think the author should have clarified issues with zimbocash before publishing.

  9. To compare Golix and Zimbocash is similar to comparing apples and oranges. Golix was a crypto exchange whereas Zimbocash is a digital currency that is decentralised. Golix was easier to ban because it had a physical presence in Zim and it had relationships with local banks, which forced it to be regulated according to existing laws. On the other had Zimbocash is just a peer to peer currency.

    A good question is: can the government ban Bitcoin? Many young people are trading a number of cryptos including the likes of Bitcoin and Ether. Nobody knows who has Bitcoin, and it has no physical central institution that the government can shut down. Similarly, Zimbocash cant be shut down.

    As for the question of whether it is a ponzi/pryramid scheme, that is laughable. All schemes ask you to pay a joining fee, or to buy a starter pack, or to invest a certain amount on the promise of huge returns. This is the money that people lose when the scheme implodes.

    Now, Zimbocash does not ask people to pay anything to participate. People get rewarded with tokens when they join the network. So even if this project fails, these people will not lose anything.

    1. That’s a bit better. Now if noone is paying anything and everyone was given free coin, is it the expectation that only those people will trade with each other.? Folks will also want to convert the their coin to other currencies, that’s when cashing in or out will happen. There’s no mechanism to forbid that, as that is the nature of a currency.

      And yes, government can ban the use of Bitcoin. It’s a matter of drafting legislation. And Zimbocash would then be considered a black market coin, in that case. Peer to peer networks can be crippled if one knows what they are doing.

  10. Tight….so an alternative currency…who will it be regulated by… eventually the currency has to be swappable at a given rate like any alternative currency…does that mean a cash in and cash out…what does zimbocash get out of this financially….what’s their business plan….are they a non profit organisation

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