Bitcoin Forum

I was think as a promotional thing maybe someone can convince Zimbabwe to peg their currency to the bitcoin.  They've got nothing to lose anyway right?  It's cheaper to wipe you A$$ with their currency than use it to buy the toilet paper to wipe with.  Since 99% of everyone in Zimbabwe don't have a computer then actually using the bit coin as a standardized currency would probably be unfeasible at the moment.

I know it's just a joke, but it's not like you can just decide to peg your currency to something and call it good.  It involves artificially raising or lowering the price of your currency by either selling it to lower the price, or buying it in the open market with other currencies to raise the price.  It's a manipulation of the actual market value.  They would need substantial foreign currency reserves and a currency that has some actual value to begin with.  What you're probably thinking of is what they actually did which was abandon their currency in favor of a real one, but then they can't print their own money.

Yeah obviosuly no one will convince them to use the bitcoin but it's a thought.
They've chucked their currency out the window a four times in the last 30 years.  So yeah totally replacing it.  Right now everyone just uses the US dollar there.  So they can't print their our money anyway.  Seems like the government in Zimbabwe can't keep their fingers off the printing presses when they do print their own money. look at the history of their currency: http://en.wikipedia.org/wiki/Zimbabwean_dollar  At the moment they have no official currency.

it looks like they are planning a gold-backed currency: http://www.newzimbabwe.com/blog/index.php/2011/05/gmuponda/zim-dollar-cannot-wait-for-elections


well, since you get thrown in jail for using facebook who would want a computer? http://bit.ly/mC1PM0

An amusing concept. Here's something else amusing: it's goddamn Zimbabwe. Who the hell has a computer in Zimbabwe?

But seriously, if the bitcoin ever does get on an international exchange, eventually demand for it will be saturated and its value will more or less stabilize against other international currencies. Once it's stable, it might be an appealing universal currency for trade, a place currently (probably not for long) held by the US dollar.

It's not getting any better:

http://www.bbc.co.uk/news/world-africa-26034078

Fast going the same way a little bit further south on the same continent..

Hence the recent surge of interest in BTC here. Horrendous exchange rates and draconian exchange control regulations that can only be circumvented by something like BTC...

I'm sure once the government wakes up they'll put a stop to it here as well.

hard to use btc without a computer?

wouldn't zimbabwe be better off with something like M-pesa? 

I liked the comment by Cuthbert, the 45-year-old taxi driver.


Cute.

You can try...  ::)

but more people in the country would have phones that could use m-pesa easily.  m-pesa is already used by tens of millions of people in africa, the middle east and indian subcontinent as M-Paisa.  This would be a more pragmatic solution for zimbabwe over bitcoin. 

I realise this is a bitcoin forum, but not all solutions are nails looking for the same hammer. 

To peg something to something, you need to have both.
They cannot peg their currency to Bitcoin, if they don't have any Bitcoin.
First step for them would be to buy some Bitcoin to create a reserve.
Assuming they will decide to spend some hard currency to buy some BTC (highly unlikely),
imagine what would happen to the price of BTC when market will find out that
one government is buying it to create a reserve...

Zimbabwe has 8 currencies that are accepted as legal tender!

If the people have simple feature phones then they can use the Kipochi Bitcoin wallet.  This will allow them to send/receive bitcoins with one another and enable them to convert to/from M-PESA money (Ksh).

Certainly, M-PESA already has a large network of users, and I think the money (Ksh) is pegged to the USD (1000 Ksh = 13 USD), giving it some stability.

However, M-PESA also charges high fees (as far as I can gather, 3-6% for sending about 10 USD worth to another registered user).  There are also some privacy problems (passports and national ID cards are involved).

I agree that Bitcoin is not always the best solution, but here I feel it offers some promise and should not be dismissed out of hand.

do they still have hyper inflation? Don't they use USD?

I actually wasn't dismissing bitcoin out of hand.  otoh, your rolleyes was dismissing my point out of hand.  this is a much more nuanced argument than you had before, and I learned about Kipochi bitcoin wallet from your second post, so thanks for this.

My apologies.  "Dismissed out of hand" was too strong.  I was merely pleased to see a newbie using facts and logic and treating Bitcoin as a tool (rather than a religion) and wanted to engage you.  Genuine thanks in the wake of perceived insult is exceptionally rare here.  You're welcome; feel free to PM me if you have any cryptocurrency-related questions.

Oh, and I never use the eye-roll emoticon.  Your first comment was responded to by Wooden, not I.

agree, even toilet paper is more valuable :)

   
ZIMBABWE INFLATION RATE

The inflation rate in Zimbabwe was recorded at 0.33 percent in December of 2013. Inflation Rate in Zimbabwe is reported by the Reserve bank of Zimbabwe. From 1999 until 2013, Zimbabwe Inflation Rate averaged 1143.7 percent reaching an all time high of 66212.0 percent in December of 2007 and a record low of -7.7 percent in December of 2009. In Zimbabwe, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. This page provides - Zimbabwe Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2014-02-08

ACTUAL   PREVIOUS   HIGHEST   LOWEST   FORECAST   DATES   UNIT   FREQUENCY   
0.33   0.54   66212.00   -7.70   -0.86 | 2014/01   1999 - 2013   PERCENT   MONTHLY

http://www.tradingeconomics.com/zimbabwe/inflation-cpi

They are no longer running around with carts full of paperbills.

How about you check back on how things are doing in Zimbabwe ? That was 5 years ago.