Bitcoin May Be the Ideal Currency for Zimbabwe during the Times of Hyperinflation
Philip Haslam, the author of When Money Destroys Nations suggests the use of Bitcoin to solve the current economic problems of Zimbabwe. Zimbabwe has been having its own share of economic woes, just like rest of the world. The country is in short supply of currency leading to a financial crisis. The country’s economy has been running on the US Dollar since its recovery from the earlier collapse of the economy. The scarcity of US Dollar has got the economists thinking whether Bitcoin is the solution to the country’s current economic predicament. The same thought has been reiterated by one....
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Zimbabwe has begun printing bond notes, allegedly pegged to the US dollar, as a means to curb inflation, as other countries turn to Bitcoin. In a resurrection of the African country’s currency not seen in seven years, the central bank is attempting to restart a Zimbabwean national currency, while simultaneously preserving its value from inflation. The new bond notes are pegged to the U.S. dollar, allegedly backed by a $200 million bond facility with Afreximbank, as a safeguard against rapidly losing its value to hyperinflation, as was the case with the nation’s last currency. Zimbabwe....
Another fiat currency struggles to stay afloat as the Venezuela Bolivar looks to be in the throes of hyperinflation, which has been forecast for at least the last 18 months. Within black-market currency exchanges, the Bolivar has lost about 50% of its value versus the US Dollar in the month of November. In a sign of desperation, the nation-state has suspended reporting of their inflation rate for the time being. Also read: "BitPagos is Bringing Bitcoin to the Developing World". Will Venezuela Suffer Zimbabwe-levels of Hyperinflation? As you may know, inflation is a part of any fiat....
Venezuela is the world’s worst performing economy, hit by 700% hyperinflation and sinking in debt. Its currency, the bolivar, is currently losing half its value every 18 days. However, the government announced on Monday that it will remove the country’s largest banknote (100 VEF, worth $0.02 on the black market) over a 72 hours period. We tried to assess....
Zimbabwe's currency, the Zimbabwean dollar, is undergoing super-hyperinflation. It is not on its last legs, its kaput, its collapsed, its down and out. Zimbabweans will have to exchange quadrillions of local dollars to gain a few US dollars next week. What would you do? There are various options that Zimbabwe might go in. Create a new fiat currency. Create a new fiat currency. Adopt the US Dollar. Adopt Bitcoin. Create their own digital currency. If they create a new fiat currency then who in the global market would accept it? How long would it take to create, and get accepted into the....
Whether Bitcoin would be a better option for the southern African state of Zimbabwe to adopt as an alternative method of payment or not has triggered an online discussion this past week. It follows the news that Zimbabwe will soon print its own version of the U.S. dollar as its economy suffers a severe US dollar shortage. On 4 May 2016, Governor John Mangudya of the Reserve Bank of Zimbabwe (RBZ) announced that the government will later – possibly this month - issue bonds with a total value backed by a US$200 million Africa Export Import Bank (AFREXIM) facility. Writing in a piece....