Zimbabwe to Develop an Exclusive Gold-Backed Digital Currency
Zimbabwe has stepped forward in its progress related to the digital currency world with a strategy to develop an exclusive digital currency. Apart from that, countries around the globe have also expressed interest in releasing distinctive digital currencies. Simultaneously, one chief problem that the respective countries attempt to deal with was related to the crypto assets’ decentralized nature.
Zimbabwe Makes a Strategy to Introduce a Digital Currency Supported by Gold
For the respective reason, many nations have introduced digital currencies that are not valueless. This means that they have moved toward launching digital currencies that are supported by other assets. Such types of assets take into account gold and others. As per the recently published reports, Zimbabwe is making a strategy to release a digital currency that will be backed by the top precious metal Gold in terms of value.
The release of such a digital currency has been considered by the country while pursuing its vision of stabilizing the local unit. In addition to this, the country is also targeting to prevent the value of the currency from being depreciated against the United States dollar. John Mangudya (the Governor of Zimbabwe’s central bank) shared a statement on this matter. The respective move has the potential to benefit the nation.
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As a result of releasing a gold-backed digital currency is anticipated to be supportive of the economy of the country. With the launch of the aforementioned, the consumers will have certain facilities. One such benefit is that they will be permitted to even exchange Zimbabwe dollars’ minor amounts for digital tokens. In this way, the people having small amounts in their possession will also have the convenience.
The Exclusive Digital Currency to Offer a Hedge Against the Country’s Existing Currency Volatility
In addition to this, the people using the respective digital currency will be capable of using it in the form of a store of value. Moreover, due to the high value as well as the low volatility of gold, the respective currency will let the consumers hedge against the high volatility of the existing currency of Zimbabwe.
While commenting on this, Dr. Mangudya mentioned that the possible cause of the movements in the simultaneous market rate deals with the enhanced supply of foreign currency in the market. As per Mangudya, this is witnessed at the opening of the season for tobacco marketing.
