Zimbabwe to Introduce Gold-Backed Digital Currency
Published
The country's central bank wants people to be able to exchange Zimbabwe dollars for the gold-backed token.
By Matt BrienenThe 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.