The International Monetary Fund called on the Zimbabwean authorities to replace the introduction of a digital state coin backed by gold with liberalization of the currency legislation.
The IMF believes that the CBDC will not help solve macroeconomic problems such as the volatility of the local currency.
IMF experts believe: The most correct solution would be to remove restrictions on the exchange rate at which transactions are carried out by banks, authorized dealers and enterprises.
“A careful assessment needs to be made to ensure that the benefits of this measure outweigh the costs and potential risks, including financial stability risks, legal and operational risks, governance risks, and the cost of lost foreign exchange reserves,” IMF officials explained.
The high volatility of Zimbabwe’s national currency, combined with a limited supply of U.S. currency in the domestic market, has already caused the Zimbabwean dollar to fall significantly.
The Reserve Bank of Zimbabwe (RBZ) has announced
Plans to launch a gold-backed CBDC as part of interventions to stabilize the national fiat currency..
Using the country’s gold reserves, says RBZ manager Rjon Mangudiya, will help stabilize the declining Zimbabwean dollar, fight inflation and reduce the demand for U.S. dollars.
In February, after an official visit to El Salvador, the IMF commission made a statement that the local government should reconsider plans for bitcoin penetration into the country’s economy because BTCs increase government risks.