The Reserve Bank of Zimbabwe (RBZ) plans to issue a gold-backed digital currency as a legal tender to help stabilise the Zimbabwe (Zim) dollar.
It will enable people who have small amounts of Zim dollars to exchange them for digital tokens that can be used to store value and protect against currency fluctuations.
According to the central bank, the US dollar currently predominates and represents roughly 70% of domestic transactions.
A series of events: Following a period of hyperinflation that rendered the local currency useless, Zimbabwe abandoned its currency in 2009 and mainly replaced it with the US dollar.
The Reserve Bank of Zimbabwe restored the Zimbabwean dollar in 2019, replacing the multi-currency system.
Following the COVID-19 pandemic in 2020, the government permitted citizens with excess funds to use their foreign currency to make domestic purchases for simpler transactions, which gave rise to the dual currency system.
In July 2022, the RBZ introduced gold coins to halt the devaluation of the Zimbabwean dollar and reduce demand for US dollars
The Reserve Bank of Zimbabwe (RBZ) plans to issue a gold-backed digital currency as a legal tender to help stabilise the Zimbabwe (Zim) dollar.
It will enable people who have small amounts of Zim dollars to exchange them for digital tokens that can be used to store value and protect against currency fluctuations.