If you get your hands on Zimbabwe’s new ZiG banknotes, you might notice something unusual – each bill has a QR code printed on it. Yes, that square barcode typically used for opening websites or links now has a new use in physical cash. But why embed QR codes into actual money? Let’s take a look.
A Bid for Stability After Inflation Woes Zimbabwe has faced crippling bouts of hyperinflation and economic turmoil in recent decades, leading to the abandonment of the Zimbabwean dollar in 2009. The new ZiG currency, backed by gold and U.S. dollar reserves, represents the government’s latest attempt to reintroduce a stable sovereign currency and move away from dollarization.
The ZiG comes in cotton paper notes up to the ZiG200 denomination, featuring the iconic Zimbabwe Bird watermark. But those QR codes are the real technological draw.
Blockchain and Anti-Counterfeit Potential According to local fact-checkers, the QR codes indicate Zimbabwe’s central bank is exploring integrating blockchain and distributed ledger technology for the ZiG. These decentralized digital ledgers could “guarantee transparency and efficiency of transactions” while making the currency virtually impossible to counterfeit.
When I scanned a ZiG10 note, the QR code simply displayed the text: “Reserve Bank of Zimbabwe; ZiG10; Harare 2024.” But the codes’ potential goes far beyond that basic information.
Tracking Solution Besides Securing the ZiG
An Anti-Counterfeiting and Tracking Solution Besides securing the ZiG via blockchain, the QR codes also have anti-counterfeiting and money tracking applications baked in. Authentic bills can be instantly verified by scanning. If money gets stolen, the QR codes allow tracing the specific serial numbers to aid investigations and catch criminals.
Some speculate the codes could even allow monitoring ransom payments or integrate with digital wallet apps down the road. Zimbabwe’s central bank has expressed interest in issuing a central bank digital currency (CBDC), so the QR code backbone could prove valuable.
Still, Zimbabwe is just one of a handful of countries beginning to embed QR codes into paper money. While still a novelty globally, the tech offers a glimpse into how antiquated cash could innovate and co-exist with digital currencies and blockchain finance.
QR Code Integration
An Opportunity for Financial Education Beyond just security, some in Zimbabwe see an educational opportunity with the QR code integration. The codes could link to financial literacy resources to teach the public about saving, investing, and money management.
For tourists, the QR codes already provide basic info like exchange rates. But perhaps in the future, they could seamlessly handle currency conversions or send digital ZiG payments with just a smartphone scan.
Time will tell if Zimbabwe’s QR code gambit pays off for the ZiG’s longevity. But one thing’s for sure – they’re innovating to keep physical cash relevant in an increasingly digital financial world. So next time a QR code appears on your money, you’ll know there’s likely some advanced finance tech behind those square scannable codes.
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