The Reserve Bank of Zimbabwe (RBZ) intends to implement a gold-backed digital currency as a legal tender to help stabilize the Zim dollar, the country’s local currency, The Sunday Mail reported.
The tokens will be an electronic currency supported by the nation’s gold reserves, which will be held by the central bank. The RBZ aims to enable Zim dollar holders to exchange their currency for the gold-backed token to mitigate the local currency’s volatility.
A year earlier, one U.S. dollar was valued at around 150 Zim dollars, but now it is valued closer to 1,000 Zim dollars, as stated by Investing.com. Zimbabwe employs both the Zim dollar and the U.S. dollar.
Last August, the RBZ stated its intention to develop a central bank digital currency (CBDC), while other African countries have also been investigating CBDCs; Nigeria released its eNaira in October 2021.
