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[fiery phoenix]

Zimbabwe will soon introduce a gold-backed digital currency meant to stabilize the local unit from its continued depreciation against the dollar, source reported, citing central bank governor John Mangudya.

This will allow those holding small amounts of Zimbabwe dollars to exchange their money for digital tokens to store value and hedge against currency volatility

The tokens will help ensure that those with low amounts of currency can buy the gold units "so that we leave no one and no place behind," Mangudya told source.

Last year, the southern African country also introduced gold coins in bid to mop up excess liquidity and stabilize the local unit. Officially, the local currency trades at Z$1,000.4 against the dollar but readily changes hands at Z$1,750 on the streets of the capital.


What do you think about commodity backed digital currencies? Can they save severely inflation hit nations around the world?

 

[Gen Evie]

This should be applauded. A physical gold backed digital currency, very authentic, this is to combat the falling value of the Zimbabwean currency,People can buy the tokens and use them as a way to save their money or conduct "person-to-person and person-to-business transactions and settlements.

 

[fiery phoenix]

The only problem that remains with getting Zimbabwean citizens to buy this coin is trust.The Zimbabwean government are not trustworthy.They have in the past refused to pay back investors profits in USD when they have invested using that form.They will convert it to local currency upon withdrawal and take the USD for themselves.

 

[Flower]

It will be an interesting project if it is finally done in Zimbabwe. It will be a very good gesture if it eventually come to limelight. However, holding such currency would be a very good investment idea.

 

[fiery phoenix]

For this development to work,trust has to be established between investors and the government.Also the government will need to prove that the digital currency is truly backed by gold,exactly equal to the amount of coins they are issuing.Again they need to conduct weekly reserve audits

 

[Riberet19]

For this development to work,trust has to be established between investors and the government.Also the government will need to prove that the digital currency is truly backed by gold,exactly equal to the amount of coins they are issuing.Again they need to conduct weekly reserve audits

Exactly this is the main problem, since the currencies of the governments / central banks are simply based on trust, the government of Zimbabwe should demonstrate that this currency is indeed backed by gold and is not simply propaganda, if the currency is really backed by gold it is simply fabulous and this will certainly boost the economy of Zimbabwe which would be a fabulous example for other African countries and their development.

 

[Yugocean]

IMF against Digital

After successfully bending Argentina, the IMF has now turned to Zimbabwe. So to say, the IMF has only warned Zimbabwe, but in this way it has given a clear warning that if Zimbabwe issues any digital currency, then it will face IMF opposition.

 

[Medo24]

It is possible that IMF doesn't want any nation to launch or engage in adopting any cryptocurrency because it want to retain it relevance and dominance in the watch for Nations' economy . But why is El-Salvador not receiving any sanctions from IMF.

 

[fiery phoenix]

I think the IMF do not want the world to dump the USD as a global reserve currency and also it is against cryptocurrencies being made legal tender or anything that resembles or is close to crypto and distributed ledger technology

 

[Medo24]

A good number of countries are working effectively to bouycout the use of USD for international transactions because of the pressure the currency is having on their official currencies. I believe it a good move to strengthen their local currency.

 

[Medo24]

In addition implementation of the project is also very important because it wouldn't make any sense if the government spend huge amounts and at the end of the day they couldn't execute it or launched project.

 

[IB DD]

Zimbabwe would save their local currency with this gold backed digital currency. It could potentially increase the demand for their local Zimbabwean dollar which would help to boost it's value. I hope this works for them since they have a huge deposit of Gold.

 

[Medo24]

The strength of every country lies in the national currency so it is necessary that every country begin to strategize how to strengthen their national currency to boost the economy. I believe Zimbabwe must have considered this before embarking on this project.

 

[IB DD]

The Zimbabwean digital currency is a legal tender. I think it would help the international business people in the country complete transactions with international partners. I think it is a good initiative by the government to help boost the economy.

 

[EBUBEJAH]

From the little knowledge I have regarding currency of nations, I think this is actually a very proactive approach to preserve the nation's treasury, it is highly welcomed, and they will surely reap the good effect of this smart and Innovative move they have made, it is highly commendable.

 

[btaliat]

This may be a very long awaiting project for the Zimbabweans. This is because the currency of Zimbabwe has really lost its value which necessitated the main reason why project like this need to be urgently done to correct it.

 

[IB DD]

This may be a very long awaiting project for the Zimbabweans. This is because the currency of Zimbabwe has really lost its value which necessitated the main reason why project like this need to be urgently done to correct it.

They have already started issuing out the digital currencies. The challenge is if international business partners would be willing to accept it. If it flies internationally and has value, then that would be a clear recovery path for their national currency.

 

[Ptrikha90]

I wonder if it has been rolled out.
Plus how much impact it has.
Have things been planned properly.
How is he adoption? Feedback?
If planned and implemented properly, it can perhaps be a boon for the economy of Zimbabwe.

However, economic stabilization also needs Trade, Investments and a stable political environment, and yes a minimum trust in the Government.