Zimbabwe Bitcoin trading price close to $15,000, central bank: cryptocurrency is illegal

Despite the rapid rise in cryptocurrency prices in Zimbabwe, the Reserve Bank of Zimbabwe (RBZ) has said that Bitcoin trading and applications in the country have not yet been legalized.

In October, Golix, the country's only cryptocurrency exchange, had a bitcoin trading volume of $1 million. This week, the highest price of bitcoin on this Zimbabwean bitcoin exchange was 14490美元, while the global average price was about $8,000.

Zimbabwe’s central bank has said Bitcoin has not yet been legalized in the country, according to local media reports. The central bank has clarified its stance, saying it is still conducting research on cryptocurrencies.

Norman Mataruka, RBZ head of the registration of banking institutions, said:

We believe that Bitcoin is not legal in fact. In South Africa, as a regulator we have said that we will not allow it to exist in the market. We are currently conducting research to identify the challenges and risks that this particular product poses.

He said that until the central bank of Zimbabwe is "established and introduces a legislative and regulatory framework for bitcoin," the cryptocurrency is "not allowed to be used" in the country. Golix's trading agents have begun to closely monitor large transactions. Central bank officials said that transactions with relatively high transaction amounts require verification of the identity of the trader.

Bitcoin prices have risen rapidly in Zimbabwe since the military staged a coup last week and placed President Robert Mugabe under house arrest in his private residence.

Experts say that currently Bitcoin is mainly used in Zimbabwe to transfer money abroad and purchase products such as software. However, analysts point out that the application of cryptocurrencies in the country has not yet matured to the point where it can pay for other services, such as hotel and travel expenses and stock purchases.

Zimbabwe’s political unrest, which began a month ago when President Mugabe sacked Vice President Emmerson Mnangagwa, has seen investors flee the country’s stock market. Some say the political changes have led to a surge in bitcoin trading in the country.

Zimbabwe also faces severe liquidity challenges and a shortage of foreign currency due to low productivity. Mugabe’s policy mistakes are also believed to have directly affected foreign investment into the country.