Zimbabwe’s new gold-backed digital currency aims to be an alternative means of exchange

Zimbabwe is planning to introduce a new currency that’s backed by gold, with the aim of reducing residents’ demand for the US dollar. The gold-backed digital currency will be used as an alternative means of exchange and a store of value. The Reserve Bank of Zimbabwe introduced physical gold coins in 2022 to halt the depreciation of the local currency. The coins have proven to be effective, but have not succeeded in reducing demand for the US dollar. The governor of the Zimbabwean central bank, John Mangudya, hopes the new gold-backed digital currency will do the trick. So, let’s wait and watch when the gold-backed digital currency will become a reality for Zimbabweans.

Clever Robot News Desk 26^th April 2023