The services you need to access the good life
Kuva and Kuvacash were born of the pressing need for an efficient and stable way to hold currency, send remittances, and make payments in Zimbabwe. The issues faced by consumers and merchants there are indicative of those faced in numerous economies around the globe.
Kuvacash is secure and internationally tradeable
Zimbabwe has experienced some of the most extreme hyperinflation in modern history, most famously from 2000-2008. Since 2008, the US Dollar has functioned as the most dominant legal tender for transactions both for individuals and businesses. Government-issued bond notes, released in 2016, are ostensibly tethered to USD, but the real economy recognizes these as far lower in value.
Cash is always available with Kuvacash
A systemic imbalance in the value held in electronic balances in the Zimbabwean banking system and actual physical USD has led to a cash crisis. ATMs are commonly empty and citizens queue for hours to get out what cash the banks will provide due to extreme capital controls. This issue affects businesses even more acutely. For example, in Zimbabwe where over 60% of goods are imported, business struggle to maintain the liquidity (in an internationally tradeable currency) needed to pay their suppliers.
Kuvacash can help the public sector
An estimated 80-90% of the economy is in the informal sector where cash (USD) is king. This greatly reduces the tax base for the government and skews economic metrics such as unemployment rates and GDP.
Incumbent electronic payments systems (i.e., EcoCash, bank-issued cards) are inadequate alternatives. Transaction fees are still high, even with recent adjustments in favour of consumers, and user experience is poor. It is not uncommon for a transaction to fill up a car with fuel to take 5 to 10 minutes – frustrating both business owners and consumers alike.
Banking the Unbanked
It is well known that millions of individuals across Africa’s 54 countries are severely underbanked. The underbanked will routinely spend a significant amount of time and money-making transactions or waiting in queues. It’s often a huge hassle to access cash or to pay for essential services like health care, transportation, and taxes, and these inconveniences dramatically affect the quality of life of people across the developing world. Kuvacash believes that technology and cryptocurrency can unlock the economic potential of those who are currently underbanked, giving them access to the quality of lifestyle that they are entitled to.