Like most of the world\u2019s, Zimbabwe \u2019s economy is in shambles. Is a gold coin the solution, though? It might just be. The country\u2019s central bank announced \u201cthe \u201cMosi-oa-tunya\u201d coin, named after Victoria falls.\u201d It\u2019s Zimbabwe\u2019s response to a dire situation. According to Reuters, \u201cannual inflation, which hit almost 192% in June, cast a shadow over President Emmerson Mnangagwa\u2019s bid to revitalize the economy.\u201d<\/p>\n
In a highly unusual move, Zimbabwe \u2019s government created both a hedge against inflation and a highly-demanded product. A solution to a problem they created, sure, but still. The \u201cMosi-oa-tunya\u201d coin might just work. \u201cThe gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks,\u201d the article detailed.\u00a0<\/p>\n
A gold coin is no bitcoin, but it certainly provides a solution for analog people. At the present moment, the necessary technology to use bitcoin is not accessible to everyone. Everyone deserves a hedge against inflation, though. And if it\u2019s easy to get to, all the better. Back to Reuters\u2019 Zimbabwe report:<\/p>\n
\u201cThe central bank governor John Mangudya said in a statement on Monday that the coins will be available for sale from July 25 in local currency, U.S. dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.\u201d<\/p>\n
Of course, this leads to a giant unanswered question,<\/p>\n
Why Don\u2019t You Use Bitcoin, Zimbabwe?<\/p>\n
Almost 8 months ago, rumors that Zimbabwe might be the second nation to adopt bitcoin as legal tender made the rounds. This was a massive step, considering Zimbabwe banned all kinds of cryptocurrencies \u201cto protect the public\u201d just four years ago. However, it more than made sense considering a new Finance Minister formed a governmental cryptocurrency unit to study the subject around the same time.<\/p>\n
Africa is primed for crypto adoption. 10-20% banked. Need financial access and inclusion. Blockchain provides that with a smart phone.<\/p>\n
\u2014 CZ Binance (@cz_binance) July 6, 2022<\/p>\n\n
Always ready, NewsBTC reported on the bitcoin as legal tender rumor:<\/p>\n
\u201cNow that many citizens are demanding crypto, the government is considering the option seriously. They disclosed this information through one of their local news outlets.<\/p>\n
The news also disclosed that the country is already discussing using Bitcoin as a legal tender \u2013 the Perm Sec Brig. Colonel Charles Wekwete confirmed this information. He also declared that the blockchain offers both positives and negatives.\u201d<\/p>\n
As it turns out, Zimbabwe wasn\u2019t ready for hyperbitcoinization just yet. However, the Reuters story buried the lead. Hidden between the article\u2019s lines was the real story.<\/p>\n\n
BTC price chart for 07\/06\/2022 on Kraken | Source: BTC\/USD on TradingView.com
\nUS Dollar As Legal Tender?<\/p>\n
Let\u2019s not beat around the bush. The gold coins are cool, but a five-year dollar run is the real interesting part.<\/p>\n
\u201cLast week, Zimbabwe more than doubled its policy rate to 200% from 80% and outlined plans to make the U.S. dollar legal tender for the next five years to boost confidence.\u201d<\/p>\n
For those not up to date with Zimbabwe\u2019s economic history, Reuters provides the cliff notes:<\/p>\n
\u201cZimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the U.S. dollar. The government reintroduced the local currency in 2019, but it has rapidly lost value again.\u201d<\/p>\n
So, the country is no stranger to the U.S. dollar and it\u2019s about to lose its local currency again. A country without a local currency, like El Salvador and the Central African Republic. That makes Zimbabwe a prime candidate for bitcoin adoption down the road. There\u2019s no rush. It\u2019s not clear if this was in reaction to the \u201cMosi-oa-tunya\u201d coin news, but Binance\u2019s CEO CZ recently tweeted, \u201cAfrica is primed for crypto adoption. 10-20% banked. Need financial access and inclusion. Blockchain provides that with a smart phone.\u201d<\/p>\n
Featured Image by Tim C. Gundert from Pixabay | Charts by TradingView<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Like most of the world\u2019s, Zimbabwe \u2019s economy is in shambles. Is a gold coin the solution, though? It might just be. The country\u2019s central bank announced \u201cthe \u201cMosi-oa-tunya\u201d coin, named after Victoria falls.\u201d It\u2019s Zimbabwe\u2019s response to a dire situation. According to Reuters, \u201cannual inflation, which hit almost 192% in June, cast a shadow over President Emmerson Mnangagwa\u2019s bid to revitalize the economy.\u201d<\/p>\n
In a highly unusual move, Zimbabwe \u2019s government created both a hedge against inflation and a highly-demanded product. A solution to a problem they created, sure, but still. The \u201cMosi-oa-tunya\u201d coin might just work. \u201cThe gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks,\u201d the article detailed.\u00a0<\/p>\n
A gold coin is no bitcoin, but it certainly provides a solution for analog people. At the present moment, the necessary technology to use bitcoin is not accessible to everyone. Everyone deserves a hedge against inflation, though. And if it\u2019s easy to get to, all the better. Back to Reuters\u2019 Zimbabwe report:<\/p>\n
\u201cThe central bank governor John Mangudya said in a statement on Monday that the coins will be available for sale from July 25 in local currency, U.S. dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.\u201d<\/p>\n
Of course, this leads to a giant unanswered question,<\/p>\n
Why Don\u2019t You Use Bitcoin, Zimbabwe?<\/p>\n
Almost 8 months ago, rumors that Zimbabwe might be the second nation to adopt bitcoin as legal tender made the rounds. This was a massive step, considering Zimbabwe banned all kinds of cryptocurrencies \u201cto protect the public\u201d just four years ago. However, it more than made sense considering a new Finance Minister formed a governmental cryptocurrency unit to study the subject around the same time.<\/p>\n
Africa is primed for crypto adoption. 10-20% banked. Need financial access and inclusion. Blockchain provides that with a smart phone.<\/p>\n
\u2014 CZ Binance (@cz_binance) July 6, 2022<\/p>\n
Always ready, NewsBTC reported on the bitcoin as legal tender rumor:<\/p>\n
\u201cNow that many citizens are demanding crypto, the government is considering the option seriously. They disclosed this information through one of their local news outlets.<\/p>\n
The news also disclosed that the country is already discussing using Bitcoin as a legal tender \u2013 the Perm Sec Brig. Colonel Charles Wekwete confirmed this information. He also declared that the blockchain offers both positives and negatives.\u201d<\/p>\n
As it turns out, Zimbabwe wasn\u2019t ready for hyperbitcoinization just yet. However, the Reuters story buried the lead. Hidden between the article\u2019s lines was the real story.<\/p>\n
BTC price chart for 07\/06\/2022 on Kraken | Source: BTC\/USD on TradingView.com
\nUS Dollar As Legal Tender?<\/p>\n
Let\u2019s not beat around the bush. The gold coins are cool, but a five-year dollar run is the real interesting part.<\/p>\n
\u201cLast week, Zimbabwe more than doubled its policy rate to 200% from 80% and outlined plans to make the U.S. dollar legal tender for the next five years to boost confidence.\u201d<\/p>\n
For those not up to date with Zimbabwe\u2019s economic history, Reuters provides the cliff notes:<\/p>\n
\u201cZimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the U.S. dollar. The government reintroduced the local currency in 2019, but it has rapidly lost value again.\u201d<\/p>\n
So, the country is no stranger to the U.S. dollar and it\u2019s about to lose its local currency again. A country without a local currency, like El Salvador and the Central African Republic. That makes Zimbabwe a prime candidate for bitcoin adoption down the road. There\u2019s no rush. It\u2019s not clear if this was in reaction to the \u201cMosi-oa-tunya\u201d coin news, but Binance\u2019s CEO CZ recently tweeted, \u201cAfrica is primed for crypto adoption. 10-20% banked. Need financial access and inclusion. Blockchain provides that with a smart phone.\u201d<\/p>\n
Featured Image by Tim C. Gundert from Pixabay | Charts by TradingView<\/p>\n
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