The central bank of Zimbabwe, an African country struggling with inflation, is preparing to issue a gold-based digital currency to be used as a legal payment instrument in the country.
In a recent news shared by the local media, Central Bank of Zimbabweof gold-based digital currency was prepared to be released. The report stated that this move is an attempt to prevent the ongoing depreciation of the country’s fiat currency against the US dollar.
The country’s local currency, according to Bloomberg data From 1.001 ZWL against 1 dollar traded capital of the country Harare usually on the black market on the streets 1 dollar changes hands at 1,750 ZWL. Inflation level in the country last February 92% was recorded as.
In his statement on the subject, the Governor of the Central Bank of Zimbabwe stated that this move will allow even a small amount of ZWL to be traded with a gold-backed digital currency. John Mangudya thus aiming to prevent exchange rate fluctuations. stressed. Mangudya stated that the project will follow an inclusive policy across the country:
This comprehensive project aims to leave no one and no place behind.
Approximately for 10 years struggling with exchange rate fluctuations and inflation, hyperinflation It later adopted the dollar as its official currency. However, seeing that there is no remedy for this, the authorities put the Zimbabwe dollar back into circulation in 2019. Time will tell whether the gold-backed digital currency, Zimbabwe’s latest move to fight inflation, will work.