According to a report, the Reserve Bank of Zimbabwe is planning to issue a gold-backed digital currency.
The Reserve Bank of Zimbabwe is set to introduce a gold-backed digital currency to serve as legal tender in the country. The move is a government initiative to stabilize the local currency from continued depreciation against the U.S. dollar.
According to a report from local media outlet The Sunday Mail, the move will allow small amounts of Zimbabwean dollars to be exchanged for the digital gold token, enabling more Zimbabweans to hedge against currency volatility. Reserve Bank of Zimbabwe Governor John Mangudya said the plan intends to “leave no one and no place behind.”
Zimbabwe’s currency trades at 1,001 ZWL against $1 but is typically exchanged for 1,750 ZWL on the streets of Harare, the country’s capital, according to Bloomberg. The country’s annual consumer price inflation reached a one-year low in March at 87.6%, down from 92% in February.
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