One of the countries that comes quickest to most people’s minds when they think of ‘failed economies’ is Zimbabwe. The African country has often been in the news over the last few years for its inflation rate, which has crossed even the million percent mark at times, but this is just an indication of just how badly managed the economy has been, causing hardship to millions of its citizens.
Agricultural output over the last few years has dropped by 51%, which is extremely destructive since it is the main source of income for the majority of the country. Industrial production has reduced by 47%, and thus it is no surprise that GDP per capita has fallen by 40% during this time. Thus, there is an immediate need for change to revitalize the country’s economy, and some experts believe that blockchain could help in this regard.
The blockchain technology has already seen a lot of success, both in Africa and elsewhere in the world, which bodes well for any potential plans to use it in Africa. It is helping change and revolutionize various sectors, with the gaming and online gambling space being the best example of this. Blockchain and cryptocurrencies are being used by online gambling operators to improve their offerings for customers, while the general rise in popularity of cryptocurrencies has also helped drive more traffic to their sites. This good example of digital currencies used for online payments here at multi-crypto casino https://winz.io/ has been extremely beneficial, since transactions are super-fast, cost virtually nothing, and are extremely reliable, since they are made on the underlying blockchain network. This has benefits for both the user and the casino operator, and thus we have seen an improvement in their user numbers and engagement over the last year or so. This is just one example to show how crypto and blockchain have helped transform a sector, on a global level, and thus blockchain has the potential to change the way the Zimbabwean economy functions as well.
One of the biggest benefits to the economy will be to make transactions faster, more reliable and more efficient. Since there are no intermediaries such as banks involved, it will allow transactions to take place rapidly, while the use of the underlying blockchain will secure transactions, and keep users’ data protected. The costs of transactions will also reduce drastically, as most crypto and blockchain-based transactions are free, or have a very minimal fee. Of course, this is not restricted to just the finance or crypto space. Blockchain can be used to support trading in any sector, so it could be used to trade excess energy credits, for example. This will also allow ordinary citizens to be able to take control of their utilities and no longer have to rely on utility service providers.
Blockchain can help improve the medical and healthcare sectors of the country as well, since they can be used to build user-friendly applications and services, while confidential records can be easily stored, without fear of loss or theft, given the security that a blockchain network provides. In general, blockchain and crypto will help promote decentralization, thus giving more control to the public, and therefore incentivizing entrepreneurs to set up new businesses, which will again provide a boost to the economy over time. Blockchain, once integrated into various systems in the country, will have huge benefits, and it will be accompanied by a shift to a digital economy, which will only improve the prospects for ordinary citizens, as it will remove a number of restrictions on them.