Zimbabwe To Launch Gold-Backed Digital Currency On May 8th, Starting At $10
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This move is the latest attempt by the southern African nation to support its local currency, which has weakened by 37% against the US dollar on the official market this year. The monetary policy committee approved this move in March, eight months after Zimbabwe introduced gold coins as a store of value to help support the local unit. In contrast, Nigeria became the first country in Africa to introduce a digital currency in 2021.
The announcement indicates Zimbabwe’s willingness to adopt technology to support its economy. Introducing a gold-backed digital currency could help the country attract foreign investors and stabilize the local currency. With the weakening of the Zimbabwean dollar against the US dollar this year, the government needs to take proactive steps to support its economy. While this move may not immediately solve the economic challenges the country is facing, it is a step in the right direction.
Digital currencies are becoming increasingly popular worldwide, with many countries exploring the possibility of issuing their digital currencies. Introducing digital currencies provides a unique opportunity to streamline financial transactions, reduce costs, and increase financial inclusion. It will be interesting to see how Zimbabwe’s gold-backed digital currency performs in the market and whether it will succeed.
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