3 ms·

It's pegged to the dollar.

• rurounijones 9y ago
  For the moment, the wikipedia article talks about plans to not have this be the case. > but Nick Kacher of the Schumacher Center has discussed the possibility of pegging its value to a basket of local goods in order to insulate the local economy against volatility in the US economy.[6] What then?
  • brianpgordon 9y ago
    With a peg to the USD, banks will be happy to take your real money and hold onto it while the exchanged Berkshare remains in distribution, because they know that at worst they only have to pay back the original money. But as soon as the Berkshare is able to move against the dollar, participating banks assume some risk because they may be forced to pay out more than 1 USD for a single Berkshare. There's even some risk that the bank could run out of "foreign currency reserves" (USD deposits) to defend the Berkshare, causing it to collapse.