If Mexico used silver as currency?

Question

Wat would happen?

I keep hearing it's economy would rise, be able to vs teh dollar even teh euro, specially as it's teh world's largest silver producer if so then why not establish it?

Answer 1

That would definitely make it difficult to use an ATM in Mexico.  Unless you're talking about backing the currency in silver.  I would think it would create problems given Mexico's history with deficit spending problems.  It might also increase the desire for powerful currency speculators to play around with the central bank's currency valuation.  Like how the Bank of England was forced to float and devalue their currency after George Soros shorted 10 billion pounds.

Answer 2

Because its silver value would go down. Silver is like the only thing they have (and tequila) so they might have issuses!!