As part of its ongoing attempts to stabilise the domestic currency, the Reserve Bank of Zimbabwe (RBZ) is considering a gold-backed digital currency.
The Zimbabwean dollar is notorious for its volatility, thus the move may provide citizens with an alternate investing route to preserve the value of their assets.
Yet, previous attempts to peg the currency to other assets have frequently resulted in scandals, thereby eroding people’s trust in the central bank.
The RBZ is now considering issuing a gold-backed digital currency as a store of value rather than a means of payment. The primary goal is to provide Zimbabweans with a central-bank-backed digital asset to secure their savings and hedge against the country’s chronic exchange rate volatility.
According to RBZ Governor Dr. John Mangudya, the digital gold tokens will allow the government to handle the strong demand for foreign money while also providing poor citizens with a chance to preserve the value of their assets.
According to Investing.com, one US dollar was worth roughly 150 Zim dollars a year ago and is now worth closer to 1,000 Zim dollars. The country uses both the Zimbabwe dollar and the US dollar.
