When your Fiat currency fail, reboot and launch a new one -Zimbabwe ZiG

[Kakmakr]

It has been a leading concern with the inflation that they have. Knowing that they have so much produced money and with just paper you already have Zimbabwe dollars and stuff. I think they need to really pull themselves together and study economics and finance for the country and hopefully recover from what happened with them.

Having Bitcoin would definitely be a great asset for them to back on and not backup their actual dollars or something.

Their problems started when they started to kick people off their farms. (Political Land grabs) The Western countries turned against the then President, Robert Mugabe and his corrupt Cronies and things just started going downhill from there. (Elections were rigged and they used violence to keep them in power)

They then climbed into bed with the Chinese and other communist countries and it just got worst. You cannot simply replace your fiat currency and think you have solved all the other problems with the corruption, Nepotism and mis management of tax payers money.

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[moneystery]

i understand that what they want to achieve is a currency that is stable and valuable, because it is backed up directly by gold. however, they miss a crucial point here, that the value of a currency is not only based on the assets that back it up, but also the economy of that country. if they think that introducing a new currency backed by gold will make their currency more valuable, perhaps they will find other problems that are more complicated than the previous problems.

so instead of introducing a new currency and wasting money on it, it is better for them to improve the economy as a whole and eradicate corruption, because these are the two things that are actually the most appropriate to deal with, instead of introducing a new currency.

[AVE5]

We should not expect seeing the government or any centralized industry support for bitcoin when they have other assets and inventions that they will need the support of the people to go for, we are the ones to decern from what we want, we may not have to argue our way down with them, instead, silently go for bitcoin in cryptocurrency and achieve our financial target or freedom in it.

Bitcoin is not a solution here. Zimbabwe is facing this hyper inflation issues since a long time now. They have taken multiple extreme measures to stop the hyper inflation but nothing really worked. In order to arrest the hyper inflation, introducing Bitcoin will help them to stabilize the economy. But the population of Zimbabwe is around 16 million. Bitcoin is not ready to handle the increased volume from these 16 million new users. That might introduce new problem even for the existing users of Bitcoin.

Bitcoin should not be considered as a magic wand for all problems.

At some point the government wouldn't really care about the economy situation but all cares are about themselves. Just as being advised that we shouldn't sit on expecting what the government would do for us Instead we buckle up and find our ways depending on our desires.
With all being said , bitcoin is a decentralized non custodial currency in a platform of assets potentiality. So a government suffering an economy downfall is not only soluable when the government implements the adoptation of bitcoin to their national Economy system. The nation that was doing well and losts its potentials isn't to be accused as their inability to adopt bitcoin to their economy infrastructures neither it was as a cause us mismanagement of resources. So they can always move back and research on their historical factors so they could be able to figure out where their lapses came from and also considers what further Infrastructures they can attain to trigger revenue to elevate their economy level.

Bitcoin is a good infrastructure but let's not assume that any government who's unable to key in to it is a slack of black sliding from the economy growth.
You economy can decide to be in a blackout while you light your self up to your own successfulness. So if you find those profitable potentials in bitcoin as an individual, and the government is not restricting you as an individual to Invest on it the why not you individually to ahead and take a sharpen shape and Invest on it hence you know its valuables.

[Uruhara]

The hyper inflation that has occurred in Zimbabwe has been going on for too long. And dealing with it will definitely take quite a long time too. But this also reminds me of El Salvador, which also experienced this in the past with their own currency. El Salvador once had their own currency but due to hyper inflation they finally switched to the US Dollar. And that is indeed a solution for them in this condition. But in the case of Zimbabwe I think it is much more complicated. At least using gold coins or something like that is still a good temporary solution there. but well we know that maybe it can't be a long term solution. The problem of hyper inflation is indeed very complicated and I personally have not been able to think of the best solution for this problem. I hope Zimbabwe can soon find a good solution to this problem.

[wiss19]

i understand that what they want to achieve is a currency that is stable and valuable, because it is backed up directly by gold. however, they miss a crucial point here, that the value of a currency is not only based on the assets that back it up, but also the economy of that country. if they think that introducing a new currency backed by gold will make their currency more valuable, perhaps they will find other problems that are more complicated than the previous problems.

so instead of introducing a new currency and wasting money on it, it is better for them to improve the economy as a whole and eradicate corruption, because these are the two things that are actually the most appropriate to deal with, instead of introducing a new currency.

What you are saying there will only apply if they create a new currency alone which are not backed by anything or something decentralized like gold. Apart from gold, it is said that their new currency is also backed by other foreign currencies.

I am sure that they pick those strong currencies which may not be possible if their economy is also not strong and those countries can't afford to not maintain it because they are already used to it and that gives them a sense of respect. I wouldn't hate them for doing this and in fact this can be their motivation to improve their country later on. Once it happens, they might be ready to create their original currency again which can now perform better this time.

[Argoo]

I have mixed feelings about it. On the one hand, the old currency was totally out of control, so I don't think stabilizing it was a viable option. Also, sometimes rebooting fiat does work and lead to something relatively stable. On the other hand, Zimbabwe had been in hyperinflation mode for a while due to bad monetary policies, and simply changing the currency without changing the underlying cause (the policies) is unlikely to lead to a good result.
Hyperinflation is no fun for those who live under it, so I hope things will get better, but for now, it doesn't look like the kind of major shift that Zimbabwe needs.

If there is hyperinflation in a country, then no change in currency, be it fiat or cryptocurrency, will help it. High inflation indicates a sick economy, not a sick financial system. Therefore, first of all, it is necessary to develop the economy: to encourage the development of industry, agriculture, tourism, and other economic projects based on the location of the country and its level of development. We need to create jobs and provide decent work for people. Then the financial system will improve with any currency.
As for a decentralized cryptocurrency, the best financial model would be for it to circulate alongside fiat currency, without replacing it.

[Ultegra134]

If there is hyperinflation in a country, then no change in currency, be it fiat or cryptocurrency, will help it. High inflation indicates a sick economy, not a sick financial system. Therefore, first of all, it is necessary to develop the economy: to encourage the development of industry, agriculture, tourism, and other economic projects based on the location of the country and its level of development. We need to create jobs and provide decent work for people. Then the financial system will improve with any currency.
As for a decentralized cryptocurrency, the best financial model would be for it to circulate alongside fiat currency, without replacing it.

I agree that the sudden change in currency isn't going to solve the hyperinflation Zimbabwe is facing. The issue lies in their economy; it's hardly the currency itself. This is the result of poor financial handling by the government; adding a few zeros in the back and printing new bills isn't magically saving anyone. This simply renders their currency useless and incompetent to be used for daily transactions. Even a complete switch to the US dollar wouldn't save a broken economy, as this doesn't reverse the fact that their citizens are struggling to get by due to excessive costs of living.

Fiat currencies are controlled by the government and aren't actually backed by commodities; only a few of them, such as the Norwegian Krone or the New Zealand dollar, are backed by commodities.

[Silberman]

If there is hyperinflation in a country, then no change in currency, be it fiat or cryptocurrency, will help it. High inflation indicates a sick economy, not a sick financial system. Therefore, first of all, it is necessary to develop the economy: to encourage the development of industry, agriculture, tourism, and other economic projects based on the location of the country and its level of development. We need to create jobs and provide decent work for people. Then the financial system will improve with any currency.
As for a decentralized cryptocurrency, the best financial model would be for it to circulate alongside fiat currency, without replacing it.

I agree that the sudden change in currency isn't going to solve the hyperinflation Zimbabwe is facing. The issue lies in their economy; it's hardly the currency itself. This is the result of poor financial handling by the government; adding a few zeros in the back and printing new bills isn't magically saving anyone. This simply renders their currency useless and incompetent to be used for daily transactions. Even a complete switch to the US dollar wouldn't save a broken economy, as this doesn't reverse the fact that their citizens are struggling to get by due to excessive costs of living.

Fiat currencies are controlled by the government and aren't actually backed by commodities; only a few of them, such as the Norwegian Krone or the New Zealand dollar, are backed by commodities.

Even if a currency by itself cannot fix the huge economic problems the government of Zimbabwe is facing, it could surely help, after all two characteristics that money is supposed to have is to be an unit of account and a store of wealth, and a strong currency could generate enough confidence among the general population to save and invest with the currency, but when the currency is being inflated away by the government, it is impossible to use such currency to save or to use it as a measure of wealth.

[Slow death]

If there is hyperinflation in a country, then no change in currency, be it fiat or cryptocurrency, will help it. High inflation indicates a sick economy, not a sick financial system. Therefore, first of all, it is necessary to develop the economy: to encourage the development of industry, agriculture, tourism, and other economic projects based on the location of the country and its level of development. We need to create jobs and provide decent work for people. Then the financial system will improve with any currency.
As for a decentralized cryptocurrency, the best financial model would be for it to circulate alongside fiat currency, without replacing it.

I agree that the sudden change in currency isn't going to solve the hyperinflation Zimbabwe is facing. The issue lies in their economy; it's hardly the currency itself. This is the result of poor financial handling by the government; adding a few zeros in the back and printing new bills isn't magically saving anyone. This simply renders their currency useless and incompetent to be used for daily transactions. Even a complete switch to the US dollar wouldn't save a broken economy, as this doesn't reverse the fact that their citizens are struggling to get by due to excessive costs of living.

Fiat currencies are controlled by the government and aren't actually backed by commodities; only a few of them, such as the Norwegian Krone or the New Zealand dollar, are backed by commodities.

Even if a currency by itself cannot fix the huge economic problems the government of Zimbabwe is facing, it could surely help, after all two characteristics that money is supposed to have is to be an unit of account and a store of wealth, and a strong currency could generate enough confidence among the general population to save and invest with the currency, but when the currency is being inflated away by the government, it is impossible to use such currency to save or to use it as a measure of wealth.

I'm from Mozambique and my country is close to Zimbabwe, Zimbabwe borders my country, this economic problem in Zimbabwe starts because of the dictatorship of the political party that governs Zimbabwe, the political party that governs Zimbabwe has ideas that foreigners There should be no wealth in Zimbabwe and only people who were born in Zimbabwe and are from the government party should have money. It is a party that does not accept democracy, does not accept fair and transparent elections and keeps killing people who think differently. because of the dictatorship, the us government recently placed sanctions against the president of zimbabwe and other people:

Emmerson Mnangagwa (Mnangagwa)is the President of Zimbabwe and is involved in corrupt activities , in particular those relating to gold and diamond smuggling networks. Mnangagwa provides a protective shield to smugglers to operate in Zimbabwe and has directed Zimbabwean officials to facilitate the sale of gold and diamonds in illicit markets, taking bribes in exchange for his services. Mnangagwa also oversees Zimbabwe’s security services, which have violently repressed political opponents and civil society groups.

source: https://home.treasury.gov/news/press-releases/jy2154

All that the US government said is not something that is happening now, it is something that has been happening for more than 30 years, the problem with Zimbabwe's economy is the political party that governs the country. Even if they put gold coins on the streets for transactions, it would not solve the problem of Zimbabwe's economy. I read some people talking about bitcoin that could help zimbabwe. The point is this: those people who are in the party that governs Zimbabwe are dictators and murderers, they hate everything they can't control, they wouldn't accept bitcoin because they simply wouldn't have the power to control bitcoin, it's easier for them to accept china currencies do accept bitcoin.

The solution for Zimbabwe is very simple: remove the party that has been governing the country since independence and hold fair and transparent elections, after that have an independent judicial system, have a parliament with greater powers and reduce the president's power, have independent police and have an independent exercise. The governor of the bank will be independent so that he can make decisions on technical grounds and not on ideological grounds and the interests of the political party. bring in human rights organizations to confirm that human rights are being respected and punish any corrupt person and thief when they commit a crime. When they do this, the governments of other countries will remove sanctions, and the country will produce more again and attract investors, thus having more jobs and people's purchasing power will begin to return and little by little they will have a strong currency. This is the only solution for them.

[Ultegra134]

Even if a currency by itself cannot fix the huge economic problems the government of Zimbabwe is facing, it could surely help, after all two characteristics that money is supposed to have is to be an unit of account and a store of wealth, and a strong currency could generate enough confidence among the general population to save and invest with the currency, but when the currency is being inflated away by the government, it is impossible to use such currency to save or to use it as a measure of wealth.

I'm hoping it's going to assist because it's practically backed by gold, and it's setting solid foundations for a stronger currency, so theoretically, you cannot simply start adding zeros and printing a ton of worthless bills. We'll see to what degree, though. This situation is extremely similar to Venezuela's, in which hyperinflation has also skyrocketed over the past few years. It's saddening for the citizens of these countries to not be given a practical solution.

~Snipped~

I'm unaware of the whole picture regarding the political and economic situation in Zimbabwe. Certainly, their government is incompetent in providing an actual solution for the country's hyperinflation issues while taking advantage of the country's natural resources, such as gold and diamonds, for their own profit. I haven't found much regarding the current political party, but the source you quoted provides some serious allegations against the current government.

Also, Bitcoin is not a panacea that works with everything, especially in this case, where the government is trying to control everything that's possible.

[Husires]

It is unthinkable for a country that was suffering from hyperinflation, problems with electricity, education, and laws to ask users to switch to using Bitcoin, whose price changes every minute.
The middle and poor classes are affected by exchange rate changes, such that $100 may be enough to support a family for a month. Therefore, in such countries, citizens do not have the luxury of investing in Bitcoin and waiting for several months before they find themselves wealthy or the value of their investments increases. Rather, they need every dollar to spend on the basics today before tomorrow.

[marlo1001]

Im sure that nothing will be changed with new currency

[el kaka22]

This doesn't really mean that they are going to get any better, obviously they will have to try something though, they cannot just make it stay the way it is right now, they have to figure out a way to fix things and I believe that they are doing the best they can. The fact that it will not work and fail, doesn't mean that they shouldn't give a try to it, of course they could fail but even with that they need to make sure that they are trying their very best.

I believe that they are going to keep trying to figure out a way, either this or something else, eventually they will get better. Maybe it will not be great, but they will find a way that is better than what they have right now, and for that to eventually happen, they need to try like this.