The Emergence of Cryptocurrencies in Zimbabwe: Obstacles and Opportunities for Official Adoption

Abstract

Cryptocurrencies offer innovative financial solutions for regions with economic instability and limited banking access. This study examines their adoption in Zimbabwe, a country facing hyperinflation, economic uncertainty, and restricted formal financial services. The research explores challenges in Zimbabwe’s financial sector, decentralised finance theories, and relevant literature to assess cryptocurrency adoption. Findings suggest cryptocurrencies could provide a stable, decentralised alternative, enabling secure value storage and low-cost cross-border transactions. However, adoption faces barriers such as restrictive regulations, poor digital infrastructure, and low public awareness. To address these challenges, the study recommends balanced regulations, digital literacy campaigns, and infrastructure investments. These measures could create a supportive environment for cryptocurrency adoption, positioning it as a viable solution for Zimbabwe’s financial challenges. Using a systematic review approach, the study synthesises insights from peer-reviewed research, highlighting the broader potential of cryptocurrencies as transformative financial tools for emerging economies.