Reserve

Cryptocurrency

Gold

April

On April 23, the Reserve Bank of Zimbabwe (RBZ) said the gold-backed digital asset will be used as legal tender in the African nation.
The move is part of an effort to stabilize the country’s economy and local currency’s continued depreciation against the U.S. dollar.
According to <a href="https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency" target="_blank" rel="noopener" data-wpel-link="external">reports</a> in local media, the move will allow those holding small amounts of Zimbabwean dollars to exchange their money for digital tokens. This will help them store value and hedge against currency volatility.
RBZ Governor Dr. John Mangudya said the current exchange rate volatility was caused by “expectations of increased foreign currency supply.”
This is due to the start of the tobacco season when farmers receive receiving payments in USD.
<h2 id="distancing-from-the-dollar">Distancing From The Dollar</h2>
It is not the first time Zimbabwe has turned to gold to address currency volatility issues. Last year, gold coins were introduced to stabilize the local currency. It should officially trade at around $Z1,000 to the dollar but often changes hands for as much as $Z1,750 on the streets.
Zimbabwe abandoned its currency in 2009, replacing it mainly with the US dollar. This followed a period of extreme <a href="https://cryptopotato.com/is-crypto-the-perfect-and-immediate-solution-to-zimbabwes-hyperinflation/" data-wpel-link="internal">hyperinflation</a> rendering the local money worthless. In 2019, it reintroduced the Zimbabwe dollar to revive the local economy, but volatility ensued again. It has <a href="https://cryptopotato.com/zimbabwe-refutes-plans-to-embrace-bitcoin-btc-as-legal-tender/" data-wpel-link="internal">not considered</a> adopting Bitcoin as a legal tender but has mulled a CBDC (central bank digital currency).
Details on the technical aspects of the blockchain of the new digital currency were not provided.
Gold is a relatively stable commodity when compared to currencies. Gold prices have been increasing this year as another impending U.S. banking crisis has resulted in a flight to store of value assets.
<h2 id="gold-8217-s-performance-ytd">Gold&#8217;s Performance YTD</h2>
Since the beginning of the year, gold prices have increased by 8.25%. Furthermore, they hit an all-time high of $2,040 USD/oz on April 13, according to <a href="https://goldprice.org/gold-price-chart.html" target="_blank" rel="noopener" data-wpel-link="external">Gold Price</a>. However, the yellow metal has retreated since and is currently around $1,980/oz.
Comparatively, Bitcoin prices have surged this year, gaining around 70% since January 1.
The post <a href="https://cryptopotato.com/zimbabwe-to-launch-gold-backed-cryptocurrency/" rel="nofollow">Zimbabwe to Launch Gold-Backed Cryptocurrency</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

Zimbabwe to Launch Gold-Backed Cryptocurrency

目录

CryptoPotato_News

发布于 2023年4月24日的其他文章

Bitcoin (BTC) Enters Below $28K; Should Investors Worry?

Cryptocurrencies to watch for the week of April 24, 2023

China and Singapore Join Forces for Green Financing, as Chinese City Adopts Digital Yuan Salaries

Crypto wins as Cosmose dumps Stripe for Near Protocol

Crypto Exchanges Gemini and Coinbase Join Bidding for Celsius Network Assets in Upcoming Auction

Unveiling OK VIP NFTs Store & Entry Portal: Your Gateway to the Upcoming NFTs Marketplace!

订阅我们免费的电子期刊，获取每日最新加密领域动态！