The central bank has already received 135 bids for gold-backed tokens with a total value of Zimbabwean $14 billion ($12 million);
The Zimbabwean dollar has lost more than 40 percent of its value against the U.S. dollar in 2023.
As the local currency falls rapidly, the demand for the U.S. dollar increases.
Mthuli Ncube, the African country’s finance minister, said that a significant portion of domestic transactions are now conducted in foreign currency.
The Reserve Bank of Zimbabwe (RBZ) has explained plans to launch a gold-backed CBDC with the need to stabilize the national currency.
The use of gold reserves, says RBZ Governor Rjon Mangudiya, will deter a falling Zimbabwe dollar, help fight inflation and reduce the demand for U.S. dollars;
The International Monetary Fund called on Zimbabwean authorities to replace the introduction of a gold-backed digital coin with liberalized currency laws.
The IMF believes that the issue of CBDC will not help to 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.