The Reserve Bank of Zimbabwe has announced that Zimbabwe will launch a gold-backed digital currency, dumping the US dollar.
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Zimbabwe has become the latest country to dump dollar and has decided to issue gold-backed digital currency for “investment purposes with a vesting period of 180 days.” The country’s central bank has revealed that these tokens “would be used both as a means of payment and a store of value.”
The Reserve Bank of Zimbabwe (RBZ) said it will launch gold-backed digital currency on 8 May. Through this, the country’s bank aims to provide a stable means of payment and a store of values for its citizens.
The initiative aims at shoring up Zimbabwe’s faltering national currency- Zimbabwe dollar.
Zimbabwe’s de-dollarization strategy
The implementation of gold-backed digital token will take place in two phases:
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1 – focus on investment purposes
2 – facilitating transactions and settlements
According to official reports, the yuan has overtaken the dollar to become the most-used currency in China’s cross-border transactions, with it being used in 48.4% of all such transactions.