Witness the Impact of Zimbabwe Adopting Gold Standard as a Central Bank Digital Currency (CBDC) 😳
The Introduction of a Gold-Backed CBDC in Zimbabwe: A Solution or a Thinly Veiled CBDC?
Last year, the Zimbabwean government introduced a government-backed gold coin as an attempt to stabilize their currency, the Zim dollar, which was suffering from hyperinflation. However, this experiment proved to be expensive and impractical for the average citizen. Now, the government is rolling out a gold-backed digital currency (CBDC) with the goal of reducing reliance on foreign currency. This article explores the implications and potential benefits of a gold-backed CBDC, while also examining the challenges and skepticism surrounding such a system.
The Challenges of Zimbabwe’s Economy
Zimbabwe’s economy is currently in a state of turmoil, with hyperinflation and a volatile currency. The average annual salary is significantly low, making it difficult for citizens to afford a two thousand dollar gold coin. Additionally, the local demand for US Dollars has not decreased despite the introduction of the gold coin. The government hopes that a gold-backed digital currency will provide a more accessible and stable option for its citizens.
The Concept of a Gold-Backed Digital Currency
While the idea of a digital currency backed by a physical asset like gold is not new, it raises questions about the practicality and stability of such a system. There are currently a few crypto projects that are backed by gold, but the level of regulation and trust in these projects is uncertain. The transition from physical gold to a digital token backed by gold introduces new complexities and risks.
The Potential Benefits for Zimbabwe
For a country like Zimbabwe, which is experiencing hyperinflation and a lack of stability in its currency, a gold-backed CBDC could offer a potential solution. The familiarity with gold as a store of value and the growing crypto market in Africa make this concept appealing to the population. Additionally, the regulation and backing by the Central Bank provide a level of stability and trust that is lacking in the current system.
The Challenges and Skepticism
However, in countries with stable currencies like the United States, the idea of switching to a gold-backed digital currency seems unnecessary and potentially risky. The value of gold can fluctuate rapidly, adding another layer of unpredictability to the cost of goods. Additionally, the combination of cryptocurrency, gold, and a central bank currency creates a complex system that may not be easily understood or accepted by the general public.
The Credibility of Gold Backing
One of the main concerns with a gold-backed CBDC is the credibility of the gold backing. In the case of Zimbabwe, the government determines the value of one unit based on the spot price of gold. Without independent audits and verification of the gold reserves, there is skepticism about the actual amount of gold backing the currency. This raises questions about the true nature of the gold-backed CBDC and whether it is simply a thinly veiled CBDC with a credibility boost from gold’s historical performance.
Frequently Asked Questions
1. Would you be interested in a CBDC if it was backed by gold and pegged to its price?
Answer: It depends on the stability and credibility of the gold backing. If there is transparency and independent audits to ensure the actual amount of gold reserves, a gold-backed CBDC could be an attractive option for those seeking stability in a volatile economic environment.
2. How does a gold-backed CBDC differ from other cryptocurrencies?
Answer: A gold-backed CBDC is different from other cryptocurrencies as it is backed by a physical asset, gold. This provides a level of stability and tangibility that is lacking in purely digital cryptocurrencies. However, the credibility of the gold backing and the regulatory framework surrounding the CBDC are crucial factors to consider.
3. What are the potential benefits of a gold-backed CBDC?
Answer: A gold-backed CBDC can offer stability, especially in countries experiencing hyperinflation or economic instability. It provides a familiar store of value and can be easily spent, making it a viable alternative to volatile local currencies. Additionally, the regulation and backing by the Central Bank add a level of trust and credibility to the currency.
4. What are the challenges and risks associated with a gold-backed CBDC?
Answer: The main challenges and risks include the credibility of the gold backing, the potential for rapid fluctuations in the value of gold, and the complexity of combining cryptocurrency, gold, and a central bank currency. Additionally, the lack of privacy associated with digital currencies raises concerns for some individuals.
Conclusion
The introduction of a gold-backed CBDC in Zimbabwe raises interesting questions about the potential benefits and challenges of such a system. While it may provide stability and accessibility for a population familiar with gold, the credibility of the gold backing and the complexity of the system should be carefully considered. Ultimately, the success of a gold-backed CBDC depends on transparency, regulation, and the trust of the general public.
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If they can empty your account if you dont bow and lick, then you lose it whenever they desire.
CBDC promoted with gold, is the equivalent of vacs promoted with lottery drawings. Each are manipulation and coercion.
Everyone knows if you can’t hold it, you don’t own it. All currency should be backed, no fiat. The reason they brought gold into the mix is to add credibility. Might help people accept the changes.
So they are saying a CBDC is a silver or gold ETF? Why dont I just buy ETF's?? And can you trust the bank to have the gold they claim to have? Your right its lipstick on a pig. Precious metals will go sky high, its never too late to start and now is the time. There is no where else for debt to go but into physical. Palladium will be used in the next gen of computers.
No trust
Central bank is a Rothchild private bank no trust
maaaaaaaaan life iz insane if they try to enslave us via digital currency we can just attack their payment system LOOOOOOL – literally anything we build to replace it will be better – spread the word. thats our attack plan. we will not be fully enslaved by a digital currency.. spread the word that our attack plan is to cyber attack their payment system…
The US currency (and others also ) has been illegal up to this point as per the US Constitution . China recently backed it's currency with gold so you now have that to deal with.
Sit and ride; but pay close attention
Meanwhile the US wants to issue a currency backed by a weakening military. This is a way better option.
CBCD нет!
A CBDC will only be acceptable if it has a commodity or basket of commodities AND it can guarantee privacy for every transaction. Otherwise it will never be acceptable unless by force by the government.
Thry can issuse .001 grms of gold as cbdc. It make people life easy
No. The same people that caused the problem shouldn't be allowed to fix it.
Yeah, anything issued and controlled by the government is ultimately going to be for your detriment.
I wanted to buy gold coin on uphold today….UPXAU……..
But even though today spot $1989.)
The transaction showed price $2300………..so that transaction would have been ripoff……no live customer service…bot service clueless
I like gold tied currency….as long as audited by trustworthy party (god maybe)
I am from Zimbabwe, i can tell u noone likes using the local currency and pple dont trust the government…
How gullible are human beings? At one time 80 million Germans thought Adolf Hitler was a pretty cool guy. Face facts: historically all empires fail; all ideologies fail; all governments fail. And in the end, the last of the hominids (homo sapiens) will also fail. The race of man will become extinct, and that includes Mrs. Man. And anything on paper or transmitted electronically will cease to exist. So as the man said: "Don't worry, be happy."
I dont like CBDC idea at all. Texas are also considering a 100% gold backed CBDC , however , Texas plans to make their gold backed CBDC fully redeemable at any time !!! There is that option , which is magnitudes preferrable to a FED coin ( CBDC ) with zero backing and worse , zero redeemability !!!
8:52 Government controlled digital currency is just that, control! It’s the end of the private citizen! Avoid it like the plague!
Paper money is worth nearly nothing and digital money (CBDC) even less. They might as well call it points earned.
If I lived there, I would push hard to use the Bitcoin Lightning Network, or maybe XRP or Cardano.
Originally the dollar was based on gold, and now? Enjoy the new shell game.
When you force a large majority of the capital, wisdom, experience and intellectual capital out of a country without the ability to replace it appears it doesn’t work well. Ask many African countries for their outcomes. Zimbabwe and South Africa are a couple of great examples. Apartheid was the solution and endorsed by the world. The outcome has been destruction of the country but they did save the culture, God help them.
This does not appear to be any different than a paper Gold contract.
Digital money backed by gold is just another scam.
If you don't hold it in your possession, its absolutely worthless. Its invisible gold, where value to it only exists in your mind. Modern version of fools gold.
Gold backed issued physical currency, often independently audited, is another story. It forces governments to spend no more money than what they have, and stops governments into spending their citizenry into constant oblivion. Thats why they kick and scream against verifiable gold backed currency.
Any Texans on here???? It's about time we leave the union and form our own! Florida's, u coming!?
CBDC'S MEANING IS —————— COMMUNIST BANK DIGITAL CURRENCY
No I am not buying that 😮
You'd wonder the Indian and Chinese gold hoard
No !!! And NO WAY IN HELL !!!
Giving central banks more control is a horrifying idea . Why say digital currency is backed by gold if we can’t cash it in for real physical gold? Lol
I from zim but CBDC means slavery they can cut you off if you dont comply, it will be linked to mark to the mark of the beast system i cant beileve my government is spearheading this direction😢😢😢
no and no
Isnt it odd, most of the countries that are going to tank are the most desperate to force us to join the digital currency? These people are also desperate to take away our guns, however we dont believe in guns guys. Or weapons of choice is our rosaries. It might look funny but it is the most powerful weapon in the whole universe. It might sound like a joke but the aim of the rosary is future redemption and future worship of our lord jesus christ. Life does mot stop after we die, there is a future life that we desire to get or our goal. Just read the okd testsment of the Roman Catholic faithful eith the letter of the authors snd among other things like the eords of ( Imprimatur and Nihil obstat) indide the romsn catholic bible..
This new currency is taking our freedom away.
Curious what you think of Glintpay – a debit card backed by an allocated gold account? It's electronic gold but not a cryptocurrency and works well for me. There are technical problems with gold-backed crypto because of the fee structure, but a credible e-gold solution can only come from the private sector because governments will always debase.
I don't want cbdc..it's a scam because if we don't have an independent audit of US Gold reserves, we can have it similar to fiat..paper gold…like the paper etf pegged to Gold or Silver…
I like the idea of GOLD NOTES in New Hampshire…its an actual special paper with 1/2000 TROY ONCE of GOLD in there…I picked up $10,000 dollars worth of them..they come in $1,$5,$10,$20&$50..
Atleast it's not going to be devalued because it's actually GOLD…
I won't touch cryto backed by Gold because it's centralized and has an issuers…It will get derailed by the Government..county party risk..
I have BITCOIN as my cryto off the exchanges..I got slammed by coinbase, so I learn my lessons…
I hope this helps someone who's looking to invest…
MAKE JESUS YOUR PERSONAL SAVIOR,SHELTER ,FOOD,WATER
GOLD,CRYTO,COMMUNITY LIKE MINDED PEOPLE,
&PROTECTIONS…
Zero interest in ANY digital currency that can be tracked, programmed or manipulated by the same predatory central bankers that have ruled over humanity, stating wars, creating famines and killing leaders of nations to grow their profits. These folks are simply evil beyond belief
The one guy with a few brain cells to see that most people missed the fact that the gold backed currency is digital. Doesn’t take genius to realize that if America doesn’t start ripping a country apart for using gold back currency then their is a plan behind it. Also they can take the gold back whenever they want from my understanding in Zimbabwe but they kept that super quiet. When a country introduces gold currency how Libya attempted it that’s when you know they are for the people and until that happens don’t trust any so called gold backed currency.
I want to convert from CDBC TO GOLD, not the other way around.
Perhaps we should be silver backed. Gold is so overrated.
Fuck no, fuck never
once u can convert that cbdc to a real gold coin im cool
It'd be an awesome idea to have a bitcoin "paper wallet" minted onto silver/gold rounds.
As long as it is convertible to gold on demand
We are all screwed if they ban the use of gold and silver like they did in the 1930's.
"Backed by gold" that the Government refuses to even prove still exists? That's more like "backed by bullshit". Why the secrecy if it's really there? Ronald Reagan had a phrase I like: "Trust, but verify". Without proof, including random metallurgy tests on some of the bars, I don't believe it. If it's really there, this shouldn't be that hard. If it's NOT there, things are gonna get unimaginably hard!
Oh man. My wife is a Zimbo. (She lives with me in Canada meow)
I’ve heard many crazy stories from her family and all their friends. So sad.
I think one of the many that stands out, is how aparently, people wash the American money, as it gets so readily used, that people have to wash it, then air dry it.
Crazy how much that government has destroyed that countries potential.
Also, another oldie but goodie story, my wife was saving her hard earned money from side hustles of gabby sitting as so she could buy a horse one day. And by the time she could, her hard earned money, couldn’t even equal a penny of withdrawal it just vanished in the inflation of the 2000’s.
So that’s a story straight from Zimbabwe.