The Reserve Bank of Zimbabwe has announced the initiation of an experimental test for the launch of a gold-backed digital currency, The test aims to evaluate the feasibility and effectiveness of the digital currency as an alternative means to foreign currencies in Zimbabwe.
Nelson Mubonja, Director of Economic Research at the Central Bank, confirmed that the objective of launching the digital currency is to meet the increasing demand for foreign currencies by local residents. The gold-backed digital currency will serve as a legal tender for transactions between individuals and is part of the Reserve Bank’s efforts to achieve stability of the local currency.
This announcement follows a previous declaration by the Reserve Bank of Zimbabwe regarding plans to launch a peer-to-peer (P2P) trading platform, which will allow holders of digital gold tokens to trade them. It is believed that the gold-backed digital currency will contribute to reducing reliance on foreign currencies such as the US dollar and meeting the needs of the local population in Zimbabwe.
According to Nelson Mubonja, the gold-backed digital currency will function as a store of value and an alternative to the US dollar and other foreign currencies. This currency will enable local residents to store and transfer value easily, and it will be usable in daily purchases and transactions.
The launch of the gold-backed digital currency reflects a significant development in the digital currency sector in Zimbabwe and represents a step towards enhancing financial independence and achieving economic stability in the country. The experimental test is expected to be successful, and the gold-backed digital currency is anticipated to be a strong addition to the financial system in Zimbabwe.