- Phykran adds Dystater to the crypto scene
- Benefits of development of cryptocurrencies
- Economic independence.
Zimbabwe is in the middle of one of its worst economic crisis characterised by near 400% annual inflation as of January 2021, cash shortages and currency instability. The Zimbabwe dollar has failed to attract market confidence and joins a list of other failed fiat currencies like the Lebanese Lira, Venezuela Bolivar and the Argentina Peso.
A Masvingo-based tech company called Phykran recently added a cryptocurrency called Dystater to its products list in an effort to bring the best tech solutions to Zimbabweans. Rightly so, cryptocurrencies are trending worldwide largely seen through the recent surge in the price of bitcoin and other cryptos including dogecoin.
Already behind apps like Zim waves (a radio streaming service) and code dialer, its Dystater is the newest altcoin to enter Zimbabwe’s crypto scene after ZASH and the Vic Falls coin.
This brings us to the business of the day which seeks to analyse some of the benefits that Zimbabwe can get from these local cryptocurrencies.
Perhaps the features of the coins can come in handy for Zimbabweans at a time when Scrill has announced it will be stopping operations in Zimbabwe by April.
Benefits of cryptocurrency
Firstly, Dystater, Zash and the Vic Falls coin along with other alt-coins can give Zimbabweans an alternative from the fiat currencies that are in short supply eg USD, RTGS and Zimbabwean Dollar bond note. It has been reported that Phykran itself started Dystater in search of alternative means to pay its employees.
Peer to peer focus
Cryptocurrency is peer to peer which means users send or and receive money directly to another user without needing any approval from VISA’s, banks and governments.
This peer to peer system takes the government and bans out of the equation giving the user more autonomy. Using DyStater users can spend their money however they wish without dealing with intermediates like banks.
Elimination of banking fees
When the government of Zimbabwe introduced the 2% tax, many citizens may not have been willing to pay the fees but were forced. With crypto, the government will not be able to do nor anyone else as the system is unregulated and decentralized. Maintainance and minimum balance fees are also put to rest.
Because there are very limited barriers to overcome eg governments, International bank cards the transactions are very fast whether international or local because the altcoin is sent directly to the receiver.
Just like any other online platform or system, crypto can be accessed over the phone but with added convenience as personal information is not required to complete a transaction as seen with USD bank accounts.
Local Cryptocurrencies like Dystater can offer Zimbabwe an escape route out of its hyperinflation and currency shortage situation.