This statement has led to raised eyebrows and quizzical expressions.
Find out why…
Since the collapse of the Zimbabwean currency due to hyperinflation in 2008, Zimbabweans were forced to adopt a multi-currency system moving them into the digital space of doing transactions. Following yesterday’s announcement, it would appear that they are reverting to a single currency.
With an unstable economy and no cash with very few ATM’s or bank branches available, paying digitally is not only a safer method of transacting but also more convenient. More importantly with the lack of physical cash – Digital is the only way to pay.
The move to digital banking is taking over the world with the United Kingdom and Europe being at the forefront of implementing these systems. It’s a slow process but one that is being very successful in driving down costs Key to changing the behaviour of the mass market is the benefits and value add that digital brings including in driving down bank charges.
We look at some of the key factors why Zimbabwe had to evolve and become a cashless society.
– There is limited to no physical cash to trade with, weak exchange rules and a big need for imported products meant that Zimbabwe soon ran out of US dollars for all transactions.
– Businesses had to make payments, paying digitally is the only way, the new currency introduced as the RTGS dollar, is mainly money held in banks used through online transfers, bank cards or mobile money.
– Convenience & Safety – people won’t go back to cash. People will be reluctant to go back to cash, it’s simply not safe or convenient for people to carry large amounts of physical cash with them that increases the risk of crime, all of which promote the change in behaviour to foster a cashless society. This is a prime driver in moving people from financially excluded to digitally included. Zimbabwe has proved that it can be done.
We at WIZZIT know that the future of banking lies in safe authenticated digital transactions. That is why we have developed products that address the crime and cyber fraud problems and can move the world to a digital, cashless society.
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