Despite the cryptocurrency ban which was issued by the government last year in Zimbabwe, Bitcoin demand in the country has risen to $50,000. In the same light, Luno, a crypto-exchange platform in South Africa is displaying a premium of $1000 for Bitcoin.
It seems that the fight against cryptocurrency being led by the governments of most African countries is rather leading to its success. Following the last year Bitcoin ban issued by the Zimbabwean government across her territory, Golix, the only crypto-exchange in the country was closed in May 2018. This resulted to the scarcity of Bitcoin across the entire Zimbabwean territory. Note that before the shutdown of Golix, it had 49,333 active users.
Ever since this incident occurred, it has been really tough for Zimbabweans to purchase Bitcoins. This led to a very high demand of Bitcoin across the country with a relatively low to no supply of Bitcoin. For the Zimbabweans, the only way out seemed to be peer-to-peer trading unless of course, those purchasing their Bitcoins from abroad, in which case, the asking price is fixed at $50,000.
It is without doubt that not everyone can meet this price. And as a result, most Zimbabweans can only cry and grind their teeth over Bitcoin scarcity. Note that the ban on cryptocurrency in the country led to an increase in Bitcoin buying and selling price. A situation which was not welcomed by the Zimbabweans. This very incident moved many Zimbabweans into neighboring countries where they could purchase their Bitcoins at ease.
In the same likeness, Luno, a leading crypto-exchange platform in South Africa is currently displaying a premium of $1000 for Bitcoin that comes with high trading volumes. This premium came about due to the country’s introduction of capital controls whereby no one comes in or takes out without authorization. As a result of this, there is a great disparity between South Africa’s supply and demand and the global supply and demand for Bitcoin. This clearly explains the rise in price of Bitcoin in South Africa. Although her citizens haven’t welcomed the idea, they have no choice than to do with it.