Zimbabwe to Introduce Gold-Backed Digital Currency: Report
The country's central bank wants people to be able to exchange Zimbabwe dollars for the gold-backed token so that they can hedge against the currency's volatility.
Apr 24, 2023 at 9:23 a.m. UTC
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The Reserve Bank of Zimbabwe, or RBZ, plans to introduce a gold-backed digital currency as legal tender to help stabilize the local currency, the Zim dollar, the Sunday Mail reported.
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, according to Investing.com. The country operates with both the Zim dollar and the U.S. dollar.
Last August, the RBZ said it planned to create a central bank digital currency. Other African countries have also been exploring a CBDC; Nigeria launched its eNaira in October 2021.
The Reserve Bank of Zimbabwe didn't immediately return a request for comment.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.