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.
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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