Golix is a cryptocurrency exchange based in Zimbabwe and which is expanding into other parts of Africa. The exchange allows anyone to move currency out of the country — something that wasn’t possible as banks and other financial institutions restricted the avenues to facilitate this. For instance, they limited how much their members could withdraw and other requirements needed pre-filling of accounts with United States dollars.
The cryptocurrency exchange also has offices in Johannesburg, South Africa. The exchange is currently holding an ICO that ends in July 25.
How it works
Bitcoin allows users to trade Bitcoin and other cryptocurrencies in Zimbabwe, Cameroon, Kenya, Nigeria, Rwanda, South Africa, Tanzania and Uganda. Golix supports a number of coins and altcoins including BCH, BTG, BTC, DALA, DASH, ETH, RMT and XLM.
In the past, Zimbabwe’s dependency on imports for majority of products meant every business would need hard currency to transact. The situation did not get easier even after banks brought in restrictions such as how much one could withdraw from their accounts. In fact, it became worse as it made illegal activities and black markets to flourish.
The need for an alternative currency became clear even to facilitate transactions as an alternative method of paying for goods and services. This inspired formation of Golix crypto exchange.
Latest News: Golix Exchange Enters into Three African Markets
For Zimbabweans, Bitcoin and other cryptocurrencies are more stable than their own currency although it is known that crypto prices fluctuate regularly. And because the value of their money in banks is dropping regularly. However, many people in the country see Bitcoin and crypto as a solution to the problems.
With GLX, you are able to easily transfer value across national borders. You are also able to use the tokens to invest in various crypto projects around Africa. The other feature is ability to make international payments around the world using the tokens. All transactions are free on the Golix exchanges across Africa. This means you are able to trade GLX for Ethereum or bitcoin for GLX or US dollars for GLX without paying transaction fees.
Other projects can also list their tokens or coins on the platform and pay in GLX tokens.
To send payment from Zimbabwe, you are able to deposit funds in the Golix USD wallet using EcoCash or local bank transfer. You are then able to buy the cryptocurrency and send it to the person you wish.
The cryptocurrency exchange reported in May this year that 96 percent of payments and transactions in the country are being done electronically. This information came from the Minister of Finance and Economic Development.
The exchange was met with some set back on May when the central bank in Harare. It issued a circular to banking institutions instructing them to stop providing bank accounts to crypto companies. The circular also banned crypto-related activities in the country, although the exchange challenged the guidelines in court. The exchange has been sending letters to clients to stop trading digital coins at Golix. And even helping them to withdraw their funds out of the exchange. However, it is operational for other countries listed.
However, some other reports indicated that Bitfinance Limited, the operator of the exchange, had won a lawsuit challenging central bank’s authority to ban digital currencies.