Zimbabwe Launches Its Gold Backed Currency The Zig \ stacker news ~econ

Zimbabwe Launches Its Gold Backed Currency The Zig www.moneyweb.co.za/news/economy/zimbabwe-replaces-battered-dollar-with-unit-linked-to-gold-fx/

2858 sats \ 11 comments \ @TheBTCManual 6 Apr econ

Zimbabwe is famed for its hyperinflation of 2007, but never gave up on having a fiat currency, they made foreign currency legal tender as a stop-gap with people using USD and South African Rands

Then later the central tried to relaunch a local currency several times but the latest iteration of the Zim Dollar has once again failed at having a bond/debt backed currency with inflation hitting %55, the writing is on the wall so a hail mary is on the way with the Zig a gold backed currency that will start trading in April

It will launch at 13 ZIG to USD, how will conversions work? Don't know? How will prove of reserves work? Trust me bro

This might buy the government some time, but I can't see this going anyway else but tits up, just one more currency for Bitcoin to outcompete I suppose

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5 sats \ 1 reply \ @KLT 6 Apr

All roads lead to bitcoin eventually. 🫡

0 sats \ 0 replies \ @TheBTCManual OP 6 Apr

Some people refer to take several short lefts on their way there, but more power to them thinking they can outsmart it

5 sats \ 3 replies \ @riberet19 6 Apr

Let's trust them to do things right and have every ZIG backed with gold, nah just kidding, always the same story.

10 sats \ 2 replies \ @TheBTCManual OP 6 Apr

LOL its always a trust me bro situation, will be keen to see if it does improve their economic situation, their currency would in theory be stronger than our local currency the South African Rand where many Zimbos have moved to try and earn an income in a currency that's not failing slower than theirs

11 sats \ 0 replies \ @freetx 6 Apr

Obligatory "best dog" pic

0 sats \ 0 replies \ @cointastical 7 Apr

Zimbos?

Haha

1 sat \ 0 replies \ @ophiousma 6 Apr

Keep us updated

0 sats \ 0 replies \ @BitcoinIsTheFuture 7 Apr

Bitcoin —> this is the way!

0 sats \ 2 replies \ @cointastical 7 Apr

This title of this post is incorrect.

The ZiG is backed by a basket consisting of foreign currencies and precious metals, one of which is gold.

About the only good this might bring is further discussion about alternatives to pure fiat.

100 sats \ 1 reply \ @TheBTCManual OP 7 Apr

Lol yeah how do you fit the bank also has almost 1.5 tonnes more abroad, as well as $100m in cash and precious minerals – such as diamonds, that if converted into gold would account for another 0.4 tonnes into the title?

0 sats \ 0 replies \ @cointastical 7 Apr

Would adding another 10 characters to the title help?