In an effort to quell the effects of hyperinflation, Zimbabwe introduced the new generation Zimbabwe dollars. The Zimbabwean government, which plans to distribute one billion Zimbabwean dollars over the next six months, released the new currency on Tuesday.
Citizens lined up for hours outside banks to receive the new currency notes only to go home frustrated. According to Reuters, banks prohibited withdrawals of over 300 Zimbabwe dollars ($20) per week. In a country where inflation has hit 380%, 300 Zimbabwe dollars is not even enough to buy a bag of fertilizer.
Cash shortages, rising fuel costs and hyperinflation emphasize Zimbabwe’s desperate need for a currency that is immune to black market speculation and government influence. This comes at a time when Zimbabweans have moved to mobile money transactions. It appears that conditions are ideal for the entry of the most dominant cryptocurrency, bitcoin.