Zimbabwe central bank ironing out wrinkles in new currency \ stacker news ~econ

Zimbabwe central bank ironing out wrinkles in new currency cointelegraph.com/news/zimbabwe-zig-currency-gains-domestic-challenges

1449 sats \ 21 comments \ @siggy47 5 Jun econ

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85 sats \ 0 replies \ @petertodd 5 Jun

Wake me up when you can make a merkle-sum-audit-tree of gold bars...

64 sats \ 9 replies \ @Undisciplined 5 Jun

I'm curious how long they'll stick with it. Politicians don't like constraints.

52 sats \ 5 replies \ @siggy47 OP 5 Jun

I think people are already questioning whether the "backing" is legitimate. I don't know how this is verified.

95 sats \ 2 replies \ @0xbitcoiner 5 Jun

How can the public trust that this new currency backed by gold reserves will be managed differently than previous currency issuances? How the Government plans to build public trust in the new system.

The structured currency will be fully backed by foreign currency and precious metals, mainly Gold, which will be audited by independent external auditors.

https://www.rbz.co.zw/documents/press/2024/April/Questions_on_the_Structured_Currency_APRIL_2024.pdf

69 sats \ 1 reply \ @siggy47 OP 5 Jun

https://myafrikamag.com/transparency-takes-center-stage-annual-audits-on-reserves-backing-new-gold-backed-currency/

75 sats \ 0 replies \ @0xbitcoiner 5 Jun

Well, it remains to be seen if they will be honest with the people. I would like to know who the auditors are and if the reserves will be maintained. I am not putting my hand in the fire, given the past. This does not inspire confidence, but only time will tell.

64 sats \ 1 reply \ @Undisciplined 5 Jun

I know I assumed it wouldn't be legitimate. The opportunity and temptation to cheat are just too high. That's been the story of the gold standard for the past 2000 years.

It only sort of works when the note issuers are close enough to the note holders that a bank run is feasible.

0 sats \ 0 replies \ @Satosora 5 Jun

Maybe they will make those gold covered bars with tungsten inside.

42 sats \ 0 replies \ @SatsMate 6 Jun

I was just thinking this the other day. There is no way they can peg this to real gold for longer than one political term. I would be so impressed if that happened.

22 sats \ 1 reply \ @TheBTCManual 6 Jun

I've asked some people in Zim, they couldn't be arsed about this ziggy shit, they're sticking to USD/T, its crazy that a company that has so much FUD around it like tether is far more trustworthy to people than their government backed shitcoin but here we are

0 sats \ 0 replies \ @Undisciplined 6 Jun

It's not that crazy. Tether hasn't hyperinflated their currency, yet.

10 sats \ 0 replies \ @siggy47 OP 5 Jun

If anyone has the patience to read this, it's a depressing list of failures: https://www.linkedin.com/pulse/zig-currency-financial-reporting-auditing-case-study-lloyd-ce3uf

120 sats \ 1 reply \ @itsMoro 5 Jun freebie

why iron out each bill when theyre worthless 😏

0 sats \ 0 replies \ @siggy47 OP 5 Jun

Souvenir and reminder of what can (will) happen.

54 sats \ 1 reply \ @gmd 5 Jun

ZiG sounds like a shitcoin...

99 sats \ 0 replies \ @siggy47 OP 5 Jun

Certainly

54 sats \ 0 replies \ @EverythingSatsoshi 5 Jun

This is really a tragicomedy.

Thank God for bitcoin

54 sats \ 2 replies \ @Satosora 5 Jun

I have zimbabwe's old trillion dollar bill somewhere. When in hyperinflated and they had pallet of it everywhere.

10 sats \ 1 reply \ @siggy47 OP 5 Jun

Yes, I have one too somewhere.

54 sats \ 0 replies \ @Satosora 5 Jun

Im sure they arent worth anything still. lol

54 sats \ 0 replies \ @SatsMate 6 Jun

A country that goes from a currency as soft as the Zimbabwe currency to as hard as a gold-backed currency is bound to face issues.

The corruption to debase is too strong, especially in countries as poor as Zimbabwe, once the first debasement happen it is game over.