Somali Shilling coin

[Ras]

Since there are these crypto currencies based on fiat like the dollar why can't someone build one based on the Somali Shilling (SS)?

The biggest problem with the SS is the number of counterfeits in the market.

Most transaction over $1,000 is done in a foreign currency (dollars mostly).

The government doesn't have any credibility so they can't launch a new currency or even have the capacity to prevent the new one from being counterfeited again.

If the government gave a specific criteria on what makes a Shilling banknote legit; people would be able to turn in their legit bank notes and get a digital token representing their money.

This would slowly remove the fake currency from the market, prevent Gaas and ppl like him from printing more illegally and stabilize the Shilling.

Also since we'll end up using less foreign currency day to day; we could start employing people with the much cheaper Shilling.

Right now our economy is based on the influx of dollars and foreigners.

Tax collection would be a lot easier but at the same time government spending would be more transparent since everything would be on a public ledger.

Hopefully after that we could have ledgers for private assets like property and land as well as contracts.

That would definitely make people more confident in investing in Somalia.

So to sum it up:

- Digital currency based on a real currency that people could use like m-pesa...no big cultural shift here.

- No government involvement as all they have to do is confirm how to test if a bank note is legit (pre 90's notes etc)

- More government revenue and less corruption as everything is on a public ledger.

- More investment and more employment since we don't have to wait for rule of law to be implemented in Somalia as you can proof ownership of your assets.



We can't control our destiny without our own currency and the current SS is in the way of development.

 

[Blade1]

Yep the fact that Ajuuran Empire had its own currency was how they were able to be very successful and beat out competitors like the Portugese with many cities in East africa India etc. Since people will need to purchase your currency to buy your things.
We need to stand behind our own currency right now more in the country and get behind it. We can get a better currency rate by utilising a stronger economy and then way later strengthen it with our huge oil and natural resources if we want.

 

[Ras]

Yep the fact that Ajuuran Empire had its own currency was how they were able to be very successful and beat out competitors like the Portugese with many cities in East africa India etc. Since people will need to purchase your currency to buy your things.
We need to stand behind our own currency right now more in the country and get behind it. We can get a better currency rate by utilising a stronger economy and then way later strengthen it with our huge oil and natural resources if we want.

When you say "we need to stand behind our currency"; who is "we" you're referring to?

Ordinary citizens don't have a say in the value of the current Shilling.

Even if we decided to hodl strong; what's stopping a state President from printing more and devaluing the money in our hands?

We need a better solution that doesn't involve this incompetent government.

 

[Blade1]

When you say "we need to stand behind our currency"; who is "we" you're referring to?

Ordinary citizens don't have a say in the value of the current Shilling.

Even if we decided to hodl strong; what's stopping a state President from printing more and devaluing the money in our hands?

We need a better solution that doesn't involve this incompetent government.

We is the government first then us to use it more. A country can have great currency but if the citizens don't use it. It kinda useless

 

[GeKo]

Isn't the gov't creating a new somali currency to replace this useless one. Anyone with currency pre 1991 would be able to swap in for the new currency.

We could have a sovereign digital shilling built on blockchain technology, we already have mobile money widely in use so this would be an easy transition with improved security from hacks.

The gov't would be able to see the transactions on a ledger and could crack down on illegal activities and money laudering easier. There would be more transparency and less corruption.

 

[yaanyuur]

Easy, do what china does. You can buy things with foreign currency but you can't exchange local currency for foreign currency. Therefore, only the ones who toured in another country have foreign currency which will likely run out after purchasing items plus the majority of businesses will say go to the bank and get chinese money. Most people aren't travelers that is how they are able to protect their currency.

 

[FatMann]

Isn't the gov't creating a new somali currency to replace this useless one. Anyone with currency pre 1991 would be able to swap in for the new currency.

We could have a sovereign digital shilling built on blockchain technology, we already have mobile money widely in use so this would be an easy transition with improved security from hacks.

The gov't would be able to see the transactions on a ledger and could crack down on illegal activities and money laudering easier. There would be more transparency and less corruption.

They signed a deal with Sudan

http://goobjoog.com/english/sudan-likely-to-print-somalias-new-currency/

 

[Ras]

Isn't the gov't creating a new somali currency to replace this useless one. Anyone with currency pre 1991 would be able to swap in for the new currency.

We could have a sovereign digital shilling built on blockchain technology, we already have mobile money widely in use so this would be an easy transition with improved security from hacks.

The gov't would be able to see the transactions on a ledger and could crack down on illegal activities and money laudering easier. There would be more transparency and less corruption.

They signed a deal with Sudan

http://goobjoog.com/english/sudan-likely-to-print-somalias-new-currency/

Yh I read about that deal with Sudan quite a while back.

However what would stop an unelected government from doing what it wants with the currency?

They don't care about their legacy or how it will affect us all after they leave office.

A public ledger would solve a lot of Somalia's problems.

We had an efficient way of managing trade before the government was created (Xeer).

However with centralisation you get corruption and with that trust is lost.

For now let the SS float and the gov/central bank can only effect the money supply/fiscal policy through managing the interest rate.

Let Xeer deal with the rest of the economy until we get a competent elected government.

 

[Nasiib Gaashaan Cade]

I had the idea of creating a currency which a called E-Gold -Coin. Insha Allah i hope i can achieve my goal

 

[Apollo]

Cryptos can be manipulated easily. It's extremely dumb to have them as a national currency.

Insider trading laws don't apply to crypto exchanges.

 

[Ras]

Cryptos can be manipulated easily. It's extremely dumb to have them as a national currency.

Insider trading laws don't apply to crypto exchanges.

Bitcoin can be manipulated easily because of the low volumes involved.

Anyone with a couple million could move the spot price up or down.

Try that with a stable coin based on the dollar.

You'll need tens of billions to move it $1.

Somali Shilling isn't exactly the dollar but you'll won't be able to manipulate it like bitcoin.

Insider trading can also happen at any central bank and the bigger the market the smaller the impact.

However which country doesn't have laws preventing insider trading through their central bank?

I'm proposing just digitalising the currency instead of creating a new crypto currency.

All the rules and market mechanics of a national currency would apply here.