Zimbabwe Set to Introduce Gold-Backed Digital Currency to Stabilize Local Unit
Tecnología Zimbabue se prepara para introducir una moneda digital respaldada por oro para estabilizar la unidad local The gold-backed digital currency will provide a stable store of value for those with low amounts of currency. The move is expected to mop up excess liquidity and stabilize the local unit, which has been facing continuous depreciation against the US dollar. Zimbabwe abandoned its currency in 2009 after an episode of hyperinflation and reintroduced it in 2019 to revive the economy. Zimbabwes Central Bank Governor, John Mangudya, has announced that the country will soon introduce a gold-backed digital currency to stabilize the local unit, which has been continuously depreciating against the US dollar. The move is expected to enable small investors to exchange their money for digital tokens to hedge against currency volatility. Background on Zimbabwes Currency Woes According to Mangudya, the tokens will help ensure that those with low amounts of currency can buy the gold units “so that we leave no one and no place behind.” The move is also expected to mop up excess liquidity and stabilize the local unit, which currently trades at Z$1,000.4 against the dollar but readily changes hands at Z$1,750 on the streets of the capital. Last year, Zimbabwe introduced gold coins in