Note from the CEO: Someone had to go first and it should be no surprise that Zimbabwe has that honor (?). We all know that “Z” (famous for the $10 Zillion, or something, note) has a currency that is a……….joke. So, what to do? First “dollarize” the currency BUT then go all bitcoin somewhere down the line. One down, another–oh damn, I don’t know how many countries there are—to go.
Zimbabwe has thrown in the towel on its currency and now there is an official death of the sovereign fiat Zimbabwe currency. This article gives a good lesson in history of how this happened, what is being done about it (dollarization) and what’s next; digital currency (bitcoin). It is a great read and you will realize that Zimbabwe is only the first since Venezuela is quite similar.
“Zimbabwe’s economy has been struggling since President Robert Mugabe encouraged the takeover of commercial farms owned by white settlers in 2000. This sparked a chain of events that lead down the path of economic fragility and downturn. Zimbabwe’s economic challenges are once again highlighted, as its sovereign currency is no longer in use and President Mugabe is trying to establish a new currency, pegged to the US dollar, in an attempt to restore economic stability.
Zimbabwe gained independence from colonial rule in 1980 at which point Robert Mugabe was elected president. Initially, President Mugabe convinced roughly 200,000 white Zimbabweans, including 4,500 farm owners, to stay and become part of democratic Zimbabwe.
However, Mugabe later changed his mind about white farm ownership and blamed economic problems on white Zimbabweans and the Western world. In 2000, Mugabe held a referendum to expand his presidential powers and to allow his government to seize land claimed by white settlers. Despite the referendum resulting in a “No” vote due to campaigning by the Movement for Democratic Change (MDC), many of Mugabe’s supporters violently seized white-owned farms, which lead to an exodus of white Zimbabweans.”