- A plan has been proposed to use the Dai stablecoin to bring financial services to Zimbabweans
Team Toast, the developer of the decentralized and censorship-resistant fiat to crypto gateway DAIHard, has published a ‘blueprint for an economic jailbreak‘ that proposes using the Dai stablecoin as a replacement for Zimbabwe’s native fiat currency, to give Zimbabweans access to a stable currency and financial services.
Zimbabwe has been ravaged by years of hyperinflation, with the native fiat currency losing essentially all of its value over and over again. Citizens have resorted to using other major fiat currencies and cryptocurrencies, but the government has often taken steps to block other currencies in order to try and prop up the native Zimbabwean fiat currency.
Team Toast plans on recruiting a network of ZimDai agents, who are people that are comfortable with using the Dai stablecoin and its associated financial services. These agents would then conduct cash remittances, local transfers, international transfers, and would teach other people how to use Dai. Essentially, ZimDai agents would provide financial services similar to a bank. The Dai stablecoin is optimal for this since it is pegged to the USD, which is the most stable currency in the world but also is decentralized and censorship-resistant.
It remains to be seen if this plan will become widely adopted in Zimbabwe. In any case, it is a seemingly effective method of handling hyperinflation, and could be applied in many different countries where hyperinflation is a problem.
Image Courtesy: Pixabay