Zimbabwe to Create New Digital Currency Backed by Gold

Zimbabwe has taken a step ahead in the digital currency sector with plans to create a new digital currency. Global nations around the world have shown interest in launching their own digital currencies. At the same time, one primary issue the nations wanted to overcome was the decentralized nature of cryptocurrencies. For this sole reason, several nations have launched digital currencies backed by assets, including gold.

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According to the latest report from The Sunday Mail, Zimbabwe is planning to introduce a gold-backed digital currency.

Zimbabwe’s digital currency launch aimed at stabilizing the local unit

The launch of digital currency is envisioned to stabilize the local unit. Additionally, it is also aimed at preventing it from depreciating against the US dollar. The statement was shared by Central Bank Governor John Mangudya.

The digital currency will allow users who are holding even small amounts of Zimbabwe dollars to exchange their money for digital tokens. These will allow them to store value and hedge against the current currency volatility.

Dr Mangudya stated: “The movements in the parallel market rate are mainly because of the expectations of increased foreign currency supply in the market when the tobacco marketing season opened.”

Mangudya also stressed that the current volatility of the exchange rate is due to expectations of increased foreign currency supply in the market.