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The Central Bank of Zimbabwe introduced recently a digital token backed by gold as a legal trend to help stabilize the Zimbabwean dollar and protect citizens from currency fluctuation
The Central Bank of Zimbabwe recently introduced a digital token backed by gold as a legal trend to help stabilize the Zimbabwean dollar and protect citizens from currency fluctuations.
The gold-backed digital tokens will be a form of electronic money. It will be backed by Zimbabwe’s gold reserves, which are held by the Central Bank. The move is to allow Zimbabwean dollar holders to exchange their currency for gold-backed tokens. This, the monetary experts in the government feel, will offer protection against the volatility of the local currency
The value of the Zimbabwean dollar has been declining significantly every year. Presently, one US dollar is worth approximately 1,000 Zimbabwean dollars. It was 150 Zimbabwean dollars a year ago. Currently, both the Zimbabwean dollar and the US dollar are used for transactions. The country was in the news recently for having the highest rate of inflation, which most often moves in a band of double and triple digits over a decade.
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President Emmerson Mnangagwa is getting a lot of flakes due to the lacklustre performance of the economy, although he vouched that Zimbabwe would become a middle-income economy by 2030.
