Zimbabwe’s central bank will launch a gold-backed digital currency as legal tender for transactions in the country as part of an intervention to stabilize the local currency.

The introduction of digital gold tokens will represent the first move by the central bank to use the country's gold reserves to anchor the Zimbabwe dollar. Zimbabwe's monetary authorities envision that digital gold tokens will allow those who hold a small amount of Zimbabwean dollars to exchange their currency for tokens to achieve value storage and hedge against exchange rate fluctuations. At the same time, the Central Bank of Zimbabwe is also considering releasing more "Thunder and Rain Mist" (Mosi-oa-Tunya) gold coins to the market to curb the recent depreciation of the Zimbabwean dollar. (Sunday Mail)