Zimbabwe’s Central Bank To Introduce Gold-backed Digital Currency

The Reserve Bank of Zimbabwe has announced plans to introduce a digital currency that will be backed by gold as a way of stabilizing the local currency and counteracting its devaluation against the US dollar. This new initiative will allow Zimbabweans to exchange small amounts of their local currency for digital gold tokens, which will help to reduce currency volatility.

Zimbabwe has been grappling with high levels of inflation for more than a decade, with the inflation rate reaching as high as 108.7% in October of last year. In response to this challenge, the country has relied on the US dollar and has also introduced its own currency at different times. However, with the growing adoption of cryptocurrencies across Africa, Zimbabwe is now turning to digital gold tokens as a way of tackling its economic difficulties.

The adoption of cryptocurrencies has been steadily increasing in Africa due to the economic challenges that many countries in the region are facing. According to Chainalysis, the Middle East and North Africa region is currently experiencing the fastest growth in cryptocurrency adoption.Zimbabwe’s Central Bank To Introduce Gold-backed Digital Currency.