a The measure is intended to bolster the fragile national currency, the Zimbabwean dollar, which is rapidly depreciating due to years of economic troubles in the South African country.
The Bahamas, Jamaica and Nigeria have already launched digital currencies backed by their central banks, with several other countries, including China, running pilot projects.
The United Kingdom is moving towards such a project, asking for public participation in this idea, and the United States of America and the European Union are considering similar measures.
In Zimbabwe, Reserve Bank of Zimbabwe Governor John Mangudia said the new tokens (cryptocurrencies) “will be backed entirely by physical gold held by the Bank” and will enter into circulation on May 8.
Mangudia explained that people can buy tokens and use them as a way to save their money or carry out “person-to-person and person-to-company transactions and agreements”.
Over the past 20 years, Zimbabwe’s economy has been characterized by rampant inflation, extreme poverty, and endemic corruption.
Also Read: Zimbabwean President Promises ‘Free and Fair’ Presidential Elections
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