Allegedly, Zimbabwe is considering launching a gold-backed digital currency with the country’s currency falling against the dollar.
The issue of digital money has become very popular after the spread of Blockchain. However, many governments have started to take steps on this issue.
Zimbabwe is on the agenda with a gold desk digital currency proposal to melt its money against the dollar
Allegedly, Zimbabwe is preparing to launch a gold-backed digital currency soon to stabilize its local currency, which has depreciated against the dollar. The report states that digital tokens will allow holders of small amounts of Zimbabwean dollars to convert their money into digital tokens to store value and protect against currency fluctuations.
Due to its volatility against the dollar, Zimbabwe is currently welcoming the proposal for a gold-backed cryptocurrency.
According to the Sunday Mail, Central Bank of Zimbabwe Governor John Panonetsa Mangudya said that the current exchange rate volatility is due to the expectation that forex supply in the market will increase when the tobacco auction season starts in March. Since the start of the auction season, Zimbabwe has exported 54.9 million kilograms of tobacco worth $307 million.
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