ZIMBOCASH: A Decentralised Sound Money To The Rescue Of Zimbabwe
A movement for decentralised and sound money has emerged out of hyperinflation plagued Zimbabwe. It sounds like a typical enough is enough; we are tired of the rampant money printing destroying our lives and country.
The group’s commission is to restore economic freedom and human dignity through sound money owned by every Zimbabwean at home and in the diaspora. Refreshingly, to change the narrative, their tool of choice is a non-violent one – technology.
Their motivation is that money printing is extraordinarily destructive. The drive has culminated in the pre-launch of a decentralised Cryptocurrency called ZIMBOCASH
In a chat with QT, Prof Philip Haslam, Head of Communications at ZIMBOCASH enumerated what necessitated such a peaceful revolution in the embattled Southern African country. He strongly stated:
“Money printing destroys the fabric of society. It is the cause of the hyperinflation that we see in our country. Prices are rising daily. There are fuel queues everywhere. People are becoming poor, very fast. It won’t be long before the stores empty, and the water runs dry. It’s all caused by money printing.”
The ZIMBOCASH philosophy, Philip maintains, is that Sound Money is a foundation for developing an economy. It is only in this way will there be sustainable savings, trade and wealth creation on a national scale.
They believe that people should be able to trust the money and the financial institutions that they use. Therefore, the right to securely store their money in various wallet applications without fear of expropriation or theft.
What Is ZIMBOCASH?
Formerly known as Rhodesia, Zimbabwe is a classic case of post-independent Africa, but the graver. Once a food basket of the continent, it is now a begging bowl as a result of quantitative easing.
In 2008, for instance, inflation hovered at 500 billion per cent. Secondly, many people have not forgotten the infamous two hundred thousand trillion Zimbabwean dollar notes.
It was so terrible that at a point, the money supply was 98 per cent per day. Consequently, you go to work in the morning and by the time you are returning home in the evening bus fares have doubled.
It, however, ended in 2009 after the adoption of a basket of currencies. But media reports suggest that hyperinflation has returned with an inflationary rate of 300 per cent at the end of August.
ZIMBOCASH is a decentralised network with a relatively flat structure. It is built on the TRON Blockchain using the delayed Proof of Stake (dPoS) algorithm.
People will be allocated tokens when they register with their email and phone number at www.zimbo.cash. So, no-one needs to pay any money when they join.
Subsequently, allocations halve every three months, but people get more when they refer it to others. As each additional person is added to the network, it increases in value for every participant.
After that, it will be on exchanges where people will be able to sell to international buyers and get a price to use in trade with others. Those who receive the token will only be able to sell when they have made six transfers to others.
“We’re creating the Bitcoin of Zimbabwe – ZIMBOCASH. It’s a system where the supply of money is fixed,” Haslam said.
He revealed that currently 19300 people have subscribed and it is growing at a rate of 40 per cent month on month. Others who are passionate about the project can also join the network of Ambassadors in cities throughout Zimbabwe.
Per Haslam, who is the co-author of ‘When Money Destroys Nations’, as inflation causes shortages across the country, ZIMBOCASH is going viral. The solution is in sound-money, and it will see Zimbabwe flourish again.
The team anticipate launching the token by the end of the year. As a result, exchange listing is scheduled in the middle of 2020.
“Our tech developers are working hard, but this is naturally dependent on a host of variables,” Haslam indicated. “From a sign-up perspective, allocations halve every three months, which will finish at the end of 2020.”
For the long-term goal, as the system gets established as a national currency, ZIMBOCASH will launch its native blockchain. The Head of Communication hinted it would most likely use a Mimble-Wimble technology (Proof of Work), although they will decide on the technological options at the time.
Challenges So Far
When QT asked him the challenges they are facing with the project, he declared:
“It is a viral movement that we are managing so it can be overwhelming at times. We are managing it from the passion of the team. We believe passionately in the values of what we are doing (which we detailed in our BluePrint document on our website). Our challenge is also to deliver a great IT product that works well as a currency system. We are spending much time in this process.”
To him, the most considerable problem is the need to get the currency listed on an international exchange. Though, there have been interests from some global players in Cryptosphere that are being considered carefully.
The Zimbabwe government outlawed Crypto exchanges in 2018 and frozen their bank accounts. QT wanted to know what would happen to the project if the government decides to ban it looking at the history.
“The essential critical difference is that ZIMBOCASH does not rely on the banking system for people to obtain ZIMBOCASH. We are allocating to everyone directly and so do not need a cash-out into Zimbabwe dollars,” Haslam related.
Most importantly, according to Haslam, their servers are hosted in Ireland, and the database is maintained behind strict firewalls with high-level security. However, regarding approaching the Zimbabwe government, they have spoken to several individuals in various senior government positions.
While the government has not had any negative responses, there is no-one that can give clarity so far. But Haslam emphasised that they remain passionately committed to working with the government on the project.
He denoted there are plans to allocate a percentage of the token to the authorities in exchange for legal tender. “We will allocate 10% of the tokens to the government, together with one-third of the transaction fees, he remarked”