Bitcoin (EXANTE: Bitcoin) surged in value to $13,500 in Zimbabwe after the country’s armed forces seized power on Wednesday, The Independent reported.
Zimbabweans are seeking to pour their money into anything of value as political turmoil deepens, sparking fears that hyperinflation could wipe out the value of citizens’ savings.
The price for a single Bitcoin on Harare’s Bitcoin exchange is close to double the price on global Bitcoin exchanges due to the country’s liquidity challenges.
“Interest in Bitcoin has peaked as people cannot send money outside or pay for international transactions using formal banks,” Yeukai Kusangaya, a trade coordinator at the Golix bitcoin exchange in Zimbabwe, told Quartz.
“People have had to look for alternatives and bitcoin has been a useful solution which can be used to purchase goods on Amazon or to pay for vehicles from international suppliers and traders."
The current asking price beats October’s record highs in Zimbabwe of almost $10,000. For ordinary Zimbabweans, taking a risk on Bitcoin offers relative stability.
Zimbabwe’s army seized power on Wednesday, took over the state broadcaster and said it had placed President Robert Mugabe under house arrest.