The Reserve Bank of Zimbabwe is about to introduce a gold-backed digital currency. By using the currency as an official means of payment, the country’s authorities intend to increase the stability of the Zimbabwean dollar.
It is noted that the tokens will become a form of electronic money, which will be backed by gold from the Central Bank of the country. Citizens will be able to exchange the national currency for tokens. This measure will allow residents to preserve their savings in a context of increased volatility, the Zimbabwean authorities believe.
Over the past decades, the country’s authorities have repeatedly made a denomination, since 2009, after record global hyperinflation, the country has withdrawn its currency from circulation. Instead, US dollars, British pounds sterling, and the currencies of neighboring countries circulated in the state.
In 2016, Zimbabwe launched so-called substitute dollars, which are officially pegged to the US currency on a one-to-one ratio. In 2019, the Central Bank limited the exchange in this relationship.
In April 2022, $1 was worth 135 Zimbabwean dollars. To date, 1,001 are on offer, RBC writes with reference to Investing.com data.
Previously, the Bank of Spain allowed fintech MONEI to start testing its own digital euro in a controlled environment.
Author:
Natalia Gormaleva
Source: RB
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