The Reserve Bank of Zimbabwe (RBZ) intends to issue a digital currency backed by gold as legal tender to aid in stabilizing the Zim dollar, according to the Sunday Mail.
The country’s gold reserves, which will be kept by the central bank, will act as the backing for the tokens, which are a sort of electronic money. To help them protect themselves from the volatility of the local currency, RBZ wants citizens who possess Zim dollars to be able to trade their money for the gold-backed coin.
The Zim dollar has a reputation for being unstable. According to Investing.com, 1 U.S. dollar is currently worth closer to 1,000 Zim dollars than it was a year ago when it was worth approximately 150.
The US dollar and the Zim dollar are both accepted as legal tender in the nation.
In August, RBZ made the announcement that it would launch a central bank digital currency (CBDC). Nigeria introduced its eNaira currency in October 2021, and other African nations have also been investigating a CBDC.
CoinDesk contacted the Reserve Bank of Zimbabwe for a response.
