It’s been a weird week for cryptocurrency markets. While bearish trends still linger on with Bitcoin prices looking set to plummet further, there is some cause for celebration. On Thursday, the Harare High Court in Zimbabwe lifted the Central Bank ban preventing banks from trading and offering services to cryptocurrency exchanges.
Zimbabwe cryptocurrency exchange Golix sought reversal of the ban that prohibited cryptocurrency trading in the African nation, where Bitcoin was being openly embraced.
Many cite Bitcoin’s volatility as one of its key problems. However, in countries like Zimbabwe where hyperinflation is rampant, the government recently issued Z$100 trillion-dollar bills, thus rendering the national currency all but worthless. Bitcoin’s value uncertainty in comparison feels like a walk in the park.
The Reserve Bank of Zimbabwe (RBZ) Cryptocurrency Ban
RBZ officials, including governor John Mangudya, declined to appear for court proceedings in which Golix requested a repeal of the ban put in place earlier this month. In light of their absence, the ban was lifted by default by the High Court.
The news was welcomed by Bitcoin and other cryptocurrency traders around the country, as well as investors in Zimbabwe who will now be able to openly trade again. They will also be able to withdraw US dollars once more (which otherwise must be bought on the black market at exorbitant prices) as Golix doubles up as a bitcoin ATM as well.
Lawyer, Fadzai Mahere tweeted:
“RBZ ban on cryptos lifted by the High Court. Administrative justice is alive and well in this jurisdiction.”
The argument put forth by Golix in its court application mentioned that the RBZ ban on cryptocurrency trading amounted to “lawmaking,” which is a function that pertains to the national legislative body and not a banking institution.
Shortly after the transaction ban, the central bank had written to Golix demanding them to shut down operations, close cryptocurrency accounts and “make good” on funds held by customers. So, it’s not only investors breathing a sigh of relief.