Chronicle Editor
Leonard Ncube in Victoria Falls
THE Bitclub Network, which is running one of the world’s largest Bitcoin mining operations, has encouraged tourism players to embrace crypto-currencies, which are being used by the international tourism market.
The price of a bitcoin has soared from below $1 000 beginning of year to about $17 000.
Bitclub is moving around the country raising awareness among citizens about the currency, which entails one registering as a member of the network before buying Bitcoins, which will start earning money.
Some can even buy Bitcoin mining machines, which can then generate money for them.
Three seminars were held in Victoria Falls recently where scores of residents expressed interest in adopting the cryptocurrency, which can be used to pay rates and bills, travelling expenses, accommodation in hotels and import cars and other goods.
This is despite recent warning by the Reserve Bank of Zimbabwe (RBZ) to members of the public against using Bitcoin, saying its use was not legal in the country.
Addressing Victoria Falls residents at a local hotel, Bitclub representative Mr Bigboy Ncube said Bitcoin will change the world in four years.
“This is the first global digital currency with a potential to change the world in four years. It is very cheap and quicker and is now being used to sell cars and sign contracts online and we want to urge property developers and top hotels to accept this currency as everyone is moving towards it,” said Mr Ncube.
He said there were some digital companies working in different countries to offer the service especially in South Africa where some mainstream financial institutions have already linked their systems to the currency.
In Zimbabwe there is Bitmari.
Mr Ncube said one needs to register and start building a network. He said engagements were ongoing to formalise the currency as an acceptable tender.
“We are working on a tax system whereby members will be taxed. This is a suggestion coming from governments and you would realise that going forward when you register as a member you have to provide detailed information with full names and address so that your transactions are monitored for tax purposes,” he said.
RBZ director and registrar of banking institutions, Mr Norman Mataruka, recently said the regulator would not allow use of Bitcoin in Zimbabwe.
“In terms of the Bitcoin, as far as we are concerned, it is not actually legal. In Southern Africa, what we have done as regulators, we have said that we will not allow this in our markets.
“Research is being undertaken to ascertain the challenges and risks associated with these particular products and until we have actually established and come up with a legal and regulatory framework for them, it will not be allowed,” he said.
Bitcoin has managed to attract as many as 66 000 people in Zimbabwe.
There have been numerous gambling money pyramids in the country, one of them being Geozing Pawnbrokers, which swindled thousands of investors in Bulawayo of their money. — @ncubeleon
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