|||

Insights From Exchanging Bitcoin Peer-to-Peer in Zimbabwe

Due to the difficult and dangerous political climate in Zimbabwe at the moment, I can’t disclose the identity of the people I’m talking with. Bitcoin isn’t banned here, only banks are banned from offering bank accounts to people who interact with bitcoin. Exchanges are not welcome. Speaking and trading freely with bitcoin can make you the target of harassment, arrest or worse things.

Liquidity Problem

Since exchanges can’t operate within Zimbabwe and Zimbabweans can’t open an exchange account internationally, because of sanctions there is a problem with Bitcoin liquidity. There aren’t enough bitcoin available for the local demand. Interestingly Binance started allowing Zimbabweans to use their platform again a few days ago.

With no exchanges available the trading is P2P only. WhatsApp groups are used to find buyers and sellers who then meet in person to exchange the money. Sometimes human escrow“ is involved meaning an individual is the trusted relationship in between maker and taker.

High Usage of Usdt

I found a person who helped me exchange bitcoin to USD cash today. The commission usually is 5% and they only accept a trade if it’s for 1,000 USD or more. The maximum amount they change is 50,000 USD. The trader can’t accept lower amounts because they are meeting with the customers in person. Meaning driving around town which is costly and takes time. If they were to accept 100 USD trades, they’d only make 5 USD per trade.

Another very important insight was that they themselves aren’t holding any bitcoin. They very well understand the advantages of bitcoin especially in a country like Zimbabwe, but they can’t afford to lose money. It’s easy to trade bitcoin, when it’s in a bull market, but in a bear market being a trader is especially risky, because by the time they receive the bitcoin from the seller the value can have gone down already. That’s why they convert bitcoin immediately into USDT. I was told that from the hundreds of customers this trader deals with only a handful are buying bitcoin to hold it. All the others are interested in Bitcoins properties as payment rails like being uncensorable, fast, permissionless, with low fees, globally usable, no paperwork, not controlled by the government, but they are using other transaction methods mainly USDT, which has no volatility. Until bitcoin’s price isn’t more stable people who can’t afford to hold long-term will use USDT over bitcoin.

The government is now deducting 4% of every digital transaction as a tax. Last time I was here in March 2022, it was 2%.

50 Cents Usd

This is today’s photo: 420 Zimbabwe Dollar are 0,5 USD.


You like my work and efforts with Bitcoin for Fairness to foster Bitcoin adoption on the ground in the Global South? It’s all community powered and funded by donations. Feel free to support our campaign with a donation, send sats to our lightning address or send fiat money on Patreon.

Up next P2p Adoption Bitcoin? Could Help Millions of Unbanked People. First time I was the guest on a non-Bitcoin related podcast show. Mike Seminary was inviting me to talk about Bitcoin, mining and how it could
Latest posts Bitcoin Price Surges During a War on Cash in Nigeria Donate and Receive a Bitcoiner for Fairness Outfit (L)earn Bitcoin Audiobook First Bitcoin and Lightning Node in Zambia Bitcoin and Human Rights Article Goes International Bitcoin, Das Geld Der Menschen Podcast: How Bitcoin Solves Financial Apartheid Podcast: 2022 - a Year in Grassroots Bitcoin Adoption for Africa Podcast: Mining Bitcoin With Solar in Zimbabwe 5th Bitcoin for Fairness Meetup in Lusaka, Zambia Video Documentary: How Bitcoin Enforces Human Rights Hosted a Bitcoin for Fairness Meetup in Accra, Ghana Bitcoin Technology Center “Btc” in Edwinase Community Near Kumasi First African Bitcoin Only Conference Sowing the Seeds for Further Adoption Bitcoin Flyer in Luganda Podcast: How Bitcoin Enforces Human Rights Countries Where People Suffer the Most From Currency Depreciation Opposing the Corruptible Fiat System, Bitcoin Enforces Universal Human Rights Lightning Node in a Browser Bitcoin Meetup Zambia Nr. 4 Bitcoin Flyer in Swahili Bitcoin.com Launches Verse Token Empowering Female Bitcoin Educators in Africa Earn Bitcoin on Stacker News: People Asked and I Answered “In Conversation With Trevor” the First Zimbabwean Podcast to Receive Bitcoin Payments Podcast: Introducing Bitcoin to Zimbabwe Privacy Talk Mit OrangedMike Message to Zimbabweans: “Bitcoin Should Be the Currency of Choice” The Bitcoin Myth Busters Anita Posch on Techtrends Zambia Paying Your Groceries With Bitcoin in South Africa


Contact & Imprint | Privacy Policy