![[Img #74675]](https://thelatestnews.world/wp-content/uploads/2024/12/They-discover-a-new-class-of-X-ray-sources-in-the-150x150.jpg)
First modification:
The coin was launched by introducing “tokens” which are backed by gold reserves and can be transferred between people and companies as a form of payment. With this measure, the African country seeks alternatives to the devaluation of the Zimbabwean dollar.
The Reserve Bank of Zimbabwe took the move nearly a year after the country put gold coins into circulation to stabilize its national currency, which is rapidly devaluing with the strength of the US dollar.
Unlike fiat currencies, Zimbabwe’s digital currency is backed by a certain amount of gold which allows the value of it to remain stable to a greater extent.
In most cases, when a digital currency is backed by gold, it implies having a certain measure of reserves of that element and depends on the value of the gold in the market.
Citizens who wish to use it will be able to buy and sell it using Zimbabwean dollars and other foreign currencies. Since May 8, when the measure entered into force, this it was enshrined as legal tender and a store of value along with the Zimbabwean dollar and the country’s bonds.
“Holders of physical gold coins, at their discretion, will be able to exchange or convert them, through the banking system, into gold-backed digital tokens,” the Reserve Bank of Zimbabwe said in a statement, in which it invited entities individual and corporate to use the digital currency
Zimbabwe gold-backed digital tokens have a vesting period of 180 days, have a prescribed asset status, and are also acceptable as collateral for loans.
The southern African country now joins other states on the continent such as Nigeria, Ghana and South Africa, which have introduced digital currencies.
The Bahamas and Jamaica are other territories that they have already launched digital currencies backed by their central banks and several other countries, including China, are running test projects.
Other of the greats of the G7 that are considering the measure are the United States and the United Kingdom. The latter has even carried out polls and surveys of the public to gather opinions on this subject. The European Union has also studied the possibility of having its digital currency.
With AP and local media.
