The cryptocurrency enthusiasts in Zimbabwe are in for some disappointment. The reason is that the Reserve Bank of Zimbabwe just issued a circular recently. The bank has banned all the digital currency activities taking place in the country. Now, most of the local digital currency exchanges are not happy with this news, and one of the exchanges has decided to take action against this step.
The exchange which has decided to take this initiative is Golix. This exchange has decided that it will take the central bank to the court for banning the digital currency assets. The exchange feels that the Reserve Bank of Zimbabwe does not have the right to ban the digital currency.
This ban does have serious repercussions, and it has affected the local bitcoin trades across the country. Two other exchanges have also been affected by this ban. These exchanges are Styx24 and But finance.
The major disappointment for Golix is that it was in the process of organizing an initial coin offering when this ban circular was issued. The faith of the digital currency can only be decided once the court proceedings progress.
What is apparent is that all the local digital currency exchanges will experience major loss due to this ban. There is also a possibility that once the court proceedings progress, then the bank might decide later on to give some concession to the local exchanges. However, at the moment all these are assumptions.
One thing is quite clear, and that is if Golix has decided to step into the court, then it is important that the exchange should organize its facts so that its case is strong otherwise Golix will not be able to excel in this battle.
The Reserve Bank of Zimbabwe should also come out and give a clear explanation of why it took such a strong step against the digital currency investments because this news is alarming and sad for the onlookers.
The truth is that when legal actions are taken to ban digital currency operations, then this puts the future of the local currency exchanges on the line. The same happened in case of Golix. The digital currency investors in Zimbabwe are in a dilemma currently, and it is tough for them to deal with this situation.
The best approach should be that the investors should wait and let this digital currency scenario clear out in Zimbabwe and should not make any investments at the moment.