The Death of Sovereign Fiat in Zimbabwe

  • Not surprisingly Zimbabwe also has a small but growing bitcoin community who see the value in an international decentralized digital currency.
  • Due to a lack of food to feed the nation, a reduction in foreign investment, a deterioration in international trade relationships, and international sanctions Zimbabwe fell into a deep economic depression and its currency suffered hyperinflation.
  • In 2015, the Reserve Bank of Zimbabwe officially discarded the Zimbabwean dollar and exchanged all cash holding on bank accounts into US dollars, with one US dollar being worth 35 quadrillion Zimbabwean dollars .
  • The Reserve Bank of Zimbabwe (RBZ) started issuing ‘bond notes’ on November 28, which have an official value pegged 1-to-1 with the US dollar.
  • The government announced that the new “currency” will be launched partly because there are not enough US dollar notes circulating in the country.

Economist Philip Haslam believes Bitcoin is the answer to Zimbabwe’s ongoing currency crisis as the government announces ‘bond notes’ as tender.
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