Have you heard about the gold-backed cryptocurrency?

Even though the cryptocurrency market is going through one of its worst moments so far in 2023, and despite the fact that the macroeconomic context is still uncertain as there is nothing clear about the direction the FED will take, the truth is that states are still betting on entering the cryptocurrency market.

When I say that states are still betting on entering the cryptocurrency market, I am referring to the decision taken by the government of Zimbabwe to issue a cryptocurrency backed by 140 kilos of gold.

In this sense, and despite the fact that Zimbabwe received warnings from the International Monetary Fund about the possible reduction of its reserves, the government still chose to officially launch a digital currency backed by gold.

According to officially disclosed information, the central bank of Zimbabwe confirmed that it allocated 140 kilograms of its gold reserves to back its new cryptocurrency, this type of measures already have precedents, remember that the government of Venezuela also chose to back its cryptocurrency (PETRO) in gold.

Returning to the subject of Zimbabwe, the governor of the Reserve Bank said that citizens can use the token to make peer-to-peer payments and carry out transactions with companies, which he described as a new and innovative option for payments and savings.

Finally, it is worth noting that the monetary authority, in its first launch, had received 135 applications for a value of 14 billion Zimbabwean dollars (u$s12 million) to buy the gold-backed digital tokens, and also indicated that there will be a second auction on May 18.

Ambito. Zimbabwe issues cryptocurrency backed by 140 kilos of gold. Link

The cover image was designed by the author: @lupafilotaxia, incorporating image: Ambito