52 sats \ 5 replies \ @siggy47 OP 5 Jun \ parent \ on: Zimbabwe central bank ironing out wrinkles in new currency econ
I think people are already questioning whether the "backing" is legitimate. I don't know how this is verified.
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.
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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.
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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.