The Reserve Bank of Zimbabwe (RBZ) recently announced plans to introduce a gold-backed digital currency. This move is part of the country’s efforts to modernize its financial system and promote financial inclusion. The new currency, called the Zimbabwe Gold-Backed Digital Currency (ZGDC), will be backed by the country’s gold reserves and will be used as a medium of exchange in the country.
The RBZ hopes that the introduction of the ZGDC will help to reduce the country’s reliance on the US dollar and other foreign currencies. The ZGDC will also enable Zimbabweans to transact with each other more easily and securely. Transactions will be recorded on a blockchain, which is a secure digital ledger that records all transactions. The blockchain technology will also help to reduce the risk of fraud and money laundering.
The ZGDC will be issued in denominations of 1, 5, 10, 20, 50, and 100. It will be available in both physical and digital forms. The physical form of the currency will be available in the form of coins and notes. The digital form of the currency will be available through mobile wallets and other digital platforms.
The RBZ has also announced plans to introduce a gold-backed debit card. This card will allow users to make payments using their ZGDC balance. The card will also be linked to their bank accounts and will allow them to make payments from their accounts.
The introduction of the ZGDC is expected to have a positive impact on the economy of Zimbabwe. It is expected to reduce inflation, improve economic stability, and promote financial inclusion. It is also expected to reduce the cost of transactions and increase access to financial services for those who are currently excluded from the formal banking system.
Overall, the introduction of the ZGDC is a positive step forward for Zimbabwe’s economy. It is expected to reduce reliance on foreign currencies, promote financial inclusion, reduce transaction costs, and improve economic stability. It is also expected to help Zimbabweans transact with each other more easily and securely.
