Zimbabwe’s central bank will launch a gold-backed digital currency as legal tender for transactions in the country, as part of an intervention to stabilize the local currency, the Mail on Sunday reported on April 23.
The introduction of a digital gold token would represent the first move by the central bank to use the country’s gold reserves to peg the Zimbabwean dollar.
Zimbabwean monetary authorities envision digital gold tokens that would allow those holding small amounts of Zimbabwean dollars to convert their currency into tokens as a store of value and as a hedge against exchange rate fluctuations.
Meanwhile, Zimbabwe’s central bank is also considering releasing more “Mosi-oa-Tunya” (Mosi-oa-Tunya) gold coins into the market to stem the recent depreciation of the Zimbabwean dollar.