| Zimbabwe will launch a digital currency backed by gold reserves in May to stabilize its faltering national currency, the Zimbabwe dollar. The tokens will be fully backed by physical gold held by the central bank and can be used for person-to-person and person-to-business transactions and settlements. Trust in the Zimbabwe dollar is low due to hyperinflation in 2008, resulting in many preferring scarce American dollars on the illegal market. The introduction of the digital currency aims to ensure that everyone can trade their money and leave no one behind. |
Complex Terms:
- Zimbabwe – Southern African country
- Gold reserves – Gold held by a countries central bank
- Hyperinflation – rapid price increase
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