These days we receive great news from the African continent. Central Bank of the State of Zimbabwe is launching a digital currency that will be an alternative to the US dollar. This event is scheduled for May 8.
The main reason for the introduction of digital currency is to reduce dependence on the currency of the US dollar. The announcement that we received at the end of last month was also confirmed by the central governor banks of zimbabwe.
This Monday, Zimbabwe will release digital tokens into circulation that will make its stronghold i have the reserve in gold, while the price will be specifically linked to the price of gold on London Bullion Market Association. The use of this digital currency will be reflected in the user’s capabilities, but also corporations in the form of payment (peer-to-peer) transactions.
John Panonetsa Mangudya as Governor of the Central Bank of Zimbabwe states: “Issuing gold-backed digital tokens aims to expand conservation instruments values available in the economy and improve the divisibility of investment instruments and expand their access and use by the public.”
Digital tokens will be able to be purchased through traditional banks, while transactions will be made through “e-gold” wallets or “e-gold” cards. The lowest starting price for an individual on occasion purchase of digital tokens amounts to ten US dollars, and five thousand US dollars for corporations and financial institutions.
This is an attempt to create an alternative currency, and a way to revive the failing national currency which is estimated at about one thousand Zimbabwe dollars to one US dollar.
The strength of the US dollar is still present. The US dollar rules global reserves by more than 80 years.