{"id":1255405,"date":"2023-04-24T09:10:05","date_gmt":"2023-04-24T13:10:05","guid":{"rendered":"https:\/\/bugaluu.com\/news\/zimbabwe-to-introduce-gold-backed-digital-currency\/1255405\/"},"modified":"2023-04-24T09:10:05","modified_gmt":"2023-04-24T13:10:05","slug":"zimbabwe-to-introduce-gold-backed-digital-currency","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/zimbabwe-to-introduce-gold-backed-digital-currency\/1255405\/","title":{"rendered":"Zimbabwe To Introduce Gold-Backed Digital Currency"},"content":{"rendered":"
\"\"<\/a><\/div>\n

Zimbabwe To Introduce Gold-Backed Digital Currency<\/span><\/p>\n

\n

Authored by Ana Paula Pereira via CoinTelegraph.com,<\/em><\/a><\/p>\n

The Reserve Bank of Zimbabwe is set to introduce a gold-backed digital currency to serve as legal tender in the country. The move is a government initiative to stabilize the local currency from continued depreciation against the U.S. dollar.<\/strong><\/p>\n<\/p>\n

According to a report from local media outlet The Sunday Mail, the move will\u00a0allow<\/a>\u00a0small amounts of Zimbabwean dollars to be exchanged for the digital gold token,<\/strong> enabling more Zimbabweans to hedge against currency volatility. Reserve Bank of Zimbabwe Governor John Mangudya said the plan intends to \u201cleave no one and no place behind.\u201d<\/strong><\/p>\n

Zimbabwe\u2019s currency trades at 1,001 ZWL against $1 but is typically\u00a0exchanged<\/a>\u00a0for 1,750 ZWL on the streets of Harare, the country\u2019s capital, according to Bloomberg.<\/p>\n

<\/a><\/p>\n

The country\u2019s annual consumer price inflation\u00a0reached<\/a>\u00a0a one-year low in March at 87.6%, down from 92% in February.<\/p>\n

\"\"<\/a><\/p>\n

Zimbabwe\u2018s inflation rate. Source: Trading Economics\/Reserve Bank of Zimbabwe<\/em><\/p>\n

According to Mangudya, the exchange rate in the parallel market is expected to stabilize after tobacco farmers receive their U.S. dollar payments in the coming weeks. <\/strong><\/p>\n

He said the current exchange rate volatility has been caused by \u201cexpectations of increased foreign currency supply\u201d on the market due to the tobacco season.<\/p>\n

The monetary dysfunction in Zimbabwe and lack of changes have led to businesses\u00a0printing<\/a>\u00a0their \u201cown money,\u201d often on handwritten scraps of paper, so that users can pay for future purchases,<\/strong> according to a Wall Street Journal report from March<\/p>\n

Zimbabwe has been fighting against currency volatility and inflation for over a decade.<\/p>\n

In 2009, the country adopted the U.S. dollar as its currency after an episode of hyperinflation.<\/p>\n

In 2019, the Zimbabwean dollar was reintroduced in an effort to revive the country\u2019s struggling economy.<\/p>\n

Last year, the government decided to use the U.S. dollar again in a bid to curb surging prices in the country.<\/p>\n

Crypto adoption has grown in many African countries as a result of economic challenges. <\/strong><\/p>\n

According to Chainalysis, the Middle East and North Africa is the\u00a0fastest-growing region for crypto adoption<\/a>\u00a0thanks to cross-border remittances, with over $566 billion in crypto transactions between July 2021 and June 2022, up 48% from the previous year.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 04\/24\/2023 – 11:45<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Zimbabwe To Introduce Gold-Backed Digital Currency Authored by Ana Paula Pereira via CoinTelegraph.com, The Reserve Bank of Zimbabwe is set to introduce a gold-backed digital…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1255405","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1255405"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255405\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1255405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1255405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1255405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}