Zimbabwe Set to Introduce Gold-Backed Digital Currency to Stabilise Zimbabwean Dollar

Daily Current Affairs / Zimbabwe Set to Introduce Gold-Backed Digital Currency to Stabilise Zimbabwean Dollar

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Category : International Published on: April 27 2023

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Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), is reportedly looking to introduce a gold-backed digital currency to be used as legal tender in the country.
The tokens will be a form of electronic money backed by the country's gold reserves, which will be held by the central bank.
The RBZ wants people holding Zim dollars to be able to exchange their money for the gold-backed token to help them hedge against the volatility of the local currency.
A year ago, 1 U.S. dollar was worth about 150 Zim dollars, and it's now worth closer 1,000 Zim dollars.
The country operates with both the Zim dollar and the U.S. dollar.