Cryptocurrencies have long been propagated and used as an instrument to avoid the difficulties of abusive, inflationary financial regimes. Now the bold plan is being pushed to economically get the entire Zimbabwean population out of prison with the Dai.
DAI as a rescue?
Bitcoin use has increased significantly in Zimbabwe over the past year as the government increasingly applies repressive laws to citizens to support the failing economic system. A ban on foreign currency transactions caused the use of LocalBitcoins to skyrocket, which led to high premiums on the BTC price in the region.
While US dollars are still traded on the black market, this leads to a strong dependency on cash as digital payment methods are not accessible. Citizens use local, mobile phone-based payment services for digital payments. These were also banned in October, but reintroduced after a public outcry.
Still, all local currency payments are affected by rising inflation, and bitcoin volatility makes them a less than ideal alternative.
A good day … to work hard
Team Toast, developer of the decentralized and censorship-resistant Fiat-to-crypto gateway DAIHard, has now presented a plan for the entire nation. A kind of “white paper for an economic outbreak”, if you will, that was published as “The ZimDai Whitepaper”.
With the Dai Stablecoin, DAIHard and Bis as the main instruments, it tries to overcome challenges such as user training and user-friendliness, government opposition, incomplete and government-controlled internet connections and financing issues.
The core of the plans is to recruit a network of ZimDai agents. The agent can initially be anyone who uses the cryptocurrency / Dai services to offer other bank-like services.
Services include transfers between cities, international Dai transfers for transfers from abroad, access to South African bank accounts, or simply training on how to set up and use the stable cryptocurrency Dai. Agents can charge a small commission for these services, but users would still avoid the huge fees charged by banks and other financial institutions.
Crypto for the good of all
The project is currently considering a possible token sale to raise money from the cryptocurrency community, put the plan into action, and start recruiting agents.
Of course there is still a lot of work to do. However, it is nice to see a project at Christmas that uses crypto for the benefit of others and is not looking for profit. Wasn’t that a big part of the whole idea?