News

Zimbabwe To Launch Gold-Backed Digital Currency On May 8th, Starting At $10

Key Points:

  • Zimbabwe’s central bank plans to sell a gold-backed digital currency to investors.
  • The minimum token price is set at $10 for individuals and $5,000 for corporations and other entities.
  • Introducing a gold-backed digital currency could help stabilize Zimbabwe’s local currency.
Zimbabwe’s central bank to sell gold-backed digital currency to investors, the minimum token price set at $10 for individuals and $5,000 for corporations, as per Bloomberg.

Zimbabwe’s central bank plans to sell a gold-backed digital currency to investors starting May 8th. The minimum token price will be $10 for individuals and $5,000 for corporations and other entities. The tokens will be sold in US dollars and local currency, with the latter being sold at a 20% margin above the willing-buyer willing-seller interbank mid-rate.

This move is the latest attempt by the southern African nation to support its local currency, which has weakened by 37% against the US dollar on the official market this year. The monetary policy committee approved this move in March, eight months after Zimbabwe introduced gold coins as a store of value to help support the local unit. In contrast, Nigeria became the first country in Africa to introduce a digital currency in 2021.

The announcement indicates Zimbabwe’s willingness to adopt technology to support its economy. Introducing a gold-backed digital currency could help the country attract foreign investors and stabilize the local currency. With the weakening of the Zimbabwean dollar against the US dollar this year, the government needs to take proactive steps to support its economy. While this move may not immediately solve the economic challenges the country is facing, it is a step in the right direction.

Digital currencies are becoming increasingly popular worldwide, with many countries exploring the possibility of issuing their digital currencies. Introducing digital currencies provides a unique opportunity to streamline financial transactions, reduce costs, and increase financial inclusion. It will be interesting to see how Zimbabwe’s gold-backed digital currency performs in the market and whether it will succeed.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

17 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

46 minutes ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

1 hour ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

4 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

4 hours ago

This website uses cookies.