Zimbabwe is an underdeveloped country that is suffering from the last few years due to the destructive condition of its economy. If we take a brief review of the last few years of the Zimbabwean economy then it can be seen that the main source of income of the country is its agricultural output which is also has decreased by 51%.
GDP per capita dropped by 40% also industrial production has encountered a downfall of 47%. The depriving state of the country’s economy suggests introducing a better technology that can revive the economy.
Economic analysts and futurists recommend some basic changes in the economic sector in terms of blockchain technology. Blockchain technology is a distributed general ledger that allows two parties who are willing to perform financial transactions securely without any involvement of a third trusted party like any bank.
The transactions which can be performed by blockchain technology involve the transfer of money, assets, and information. The blockchain technology includes digital money systems out of which bitcoin is the first-ever application to be used worldwide. Blockchain is successful in Africa.
The bitcoin era in South Africa has a success score of 96%. After observing the success score of blockchain technology in the rest of Africa, Zimbabwe also looks forward to its economy to shift to blockchain technology.
Shifting to blockchain technology will have several benefits for the economy of Zimbabwe which can be briefly explained as follows:
- As it is already known that by using blockchain technology the users can securely transfer their finances anywhere in the world without even involving any kind of intermediary party i.e. banks. When the users of blockchain technology are not involving any banks, it means that they are not using any banking services which makes the transactions even more fast and efficient.
- By using blockchain technology one can decrease the costs on their transactions. Even making transactions worldwide is almost free of cost. When there is a free of cost option which is even fast and efficient then definitely the general public is going to shift from old banking ways of making financial transactions to blockchain technology.
- It’s not only finances which can be transferred by the blockchain technology but different crypto assets can be transferred by this technology. Even the energy can be traded by blockchain technologies allowing its users to sell excessive energy, to the people living close to them. Usage of this advanced technology helps the residents of Zimbabwe by removing the controls from utility companies.
- Blockchain technology not only allows its users to perform transaction free of costs but also it is secured. Blockchain technology is a distributed general ledger which means all the transactions done by this technology are recorded in a ledger which can be verified and accessed by the people involved in the transactions at any point in time.
- As it is mentioned earlier that blockchain technologies are also used to transfer confidential information which contributes not only to research fields of the country but also to the medical and health care department of Zimbabwe. In the healthcare sector, all the valuable and confidential reports of patients can send them by using this platform.
- Different application developers are making efforts to develop some really easy to use and user-friendly applications based on the idea of blockchain technology. The availability of these kinds of applications makes it easy for users to make financial transactions. Because of this easy to use feature of this technology the general public is more likely to invest in cryptocurrencies which will help to thrive in the Zimbabwean economy.
- Blockchain technology promotes decentralization in the country which means transferring more control to the general public which promotes new entrepreneurs to start new businesses which eventually helps in reviving the Zimbabwean economy.
By the passage of time the blockchain technology will evolve tremendously and the fact that how the central banks are also taking part in exploring the new technologies show the chances of incorporation of blockchain technologies into the financial system of the country as a whole.
Blockchain technology promises to resolve the basic problems of the online system. It’s a secure, efficient, fast, and cheap way of performing transactions that convince the residents of Zimbabwe to come and invest in cryptocurrencies by using blockchain technology which will evolve Zimbabwean economy.