Zimbabwe Central Bank introduces gold-backed digital currency: news | coindesk JAPAN | coin desk Japan

The Reserve Bank of Zimbabwe (RBZ), the central bank of the Republic of Zimbabwe, plans to introduce a gold-backed digital currency as legal tender in an effort to stabilize the country’s currency, the Zimbabwean dollar, according to The Sunday email. Mail) reported.

The token will be a form of gold-backed electronic money owned by RBZ. RBZ wants to allow people holding Zimbabwean dollars to convert to gold-backed tokens to hedge against the volatility of their currency.

The Zimbabwe dollar is notoriously volatile. According to Investing.com, one US dollar was worth about 150 Zimbabwean dollars a year ago, but is now close to 1,000 Zimbabwean dollars. The country operates in both Zimbabwe dollars and US dollars.

RBZ announced in August that it was planning to issue a Central Bank Digital Currency (CBDC). Other African countries are also looking to issue CBDCs, with Nigeria launching an eNaira in October 2021.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Camomile Shumba/CoinDesk
｜Original: Zimbabwe to Introduce Gold-Backed Digital Currency: Report