- Zimbabwe to launch gold-backed digital currency
- Currency aimed at stabilizing local economy
- Zimbabwe follows Nigeria’s digital currency footsteps
Zimbabwe’s central bank is set to introduce a gold-backed digital currency on May 8 as it seeks an alternative to the US dollar and a solution to its faltering economy. According to Bloomberg, the new currency will be implemented in two phases, with the initial focus on investment purposes before transitioning to transactions.
Zimbabwe’s local currency has experienced a 35% decline against the US dollar this year, prompting the central bank to turn to its gold reserves and other precious minerals in a bid to stabilize its economy. The move follows Nigeria’s 2021 introduction of a digital currency, making it the first African nation to do so.
Central bank governor John Mangudya believes that the gold-backed digital tokens will diversify the available value-preserving instruments and enhance their accessibility to the public. However, critics argue that the success of this ambitious plan is uncertain and could potentially exacerbate the country’s financial challenges.
Despite these concerns, the rise of cryptocurrency has provided financial support to countries facing economic difficulties, and some experts predict that the crypto industry will eventually dominate the global financial sector.
In other news, Senators Elizabeth Warren and Roger Marshall’s notorious crypto anti-money laundering bill will be deferred due to a lack of cosponsors.
As of yet, no timeline has been established for the bill’s passage, nor have any influential individuals expressed interest in joining Warren in this endeavor.
