Zimbabwe launches a gold backed cryptocurrency to diminish the Dollar
There are many countries that are trying to reduce their reliance on the US Dollar, and they're using all kinds of means to achieve it.
Key takeaways
- Mangudya said current exchange rate volatility was due to expectations of increased foreign currency supply in the market when the tobacco auction season started in March.
- To date, since the start of the auction season Zimbabwe has exported 54.9 kilograms of tobacco valued at $307 million, and during the same period last year, it had shipped 57 million kilograms valued at $295.5 million.
- Zimbabwe abandoned its currency in 2009, replacing it mainly with the US dollar after an episode of hyperinflation rendered the local money literally worthless.
Cite or link to this article
Griffin, M. (2023) 'Zimbabwe launches a gold backed cryptocurrency to diminish the Dollar', 311 Institute, 17 May. Available at: https://www.311institute.com/zimbabwe-launches-a-gold-backed-cryptocurrency-to-diminish-the-dollar/ (Accessed: 1 October 2026).
As we continue to see the power of the dollar, the world’s global reserve currency, erode as countries such as China, Iran, Russia, and others do their best to usurp it, Zimbabwe has announced it will soon introduce a gold-backed digital currency – a kind of stablecoin - meant to stabilize the local currency or unit from its continued depreciation against the dollar, state-run Sunday Mail reported, citing central bank governor John Mangudya.
This will allow those holding small amounts of Zimbabwe dollars to exchange their money for digital tokens to store value and hedge against currency volatility, the report said.
The tokens will also help ensure that those with low amounts of local currency can buy the gold units “so that we leave no one and no place behind,” Mangudya told the Sunday Mail.
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Last year, the southern African country also introduced gold coins in bid to mop up excess liquidity and stabilize their currency, and while officially the local currency trades at Z$1,000.4 against the dollar it readily changes hands at Z$1,750 on the streets of the capital.
Mangudya said current exchange rate volatility was due to expectations of increased foreign currency supply in the market when the tobacco auction season started in March.
To date, since the start of the auction season Zimbabwe has exported 54.9 kilograms of tobacco valued at $307 million, and during the same period last year, it had shipped 57 million kilograms valued at $295.5 million.
Zimbabwe abandoned its currency in 2009, replacing it mainly with the US dollar after an episode of hyperinflation rendered the local money literally worthless. The Zimbabwe dollar was then reintroduced in 2019 in a bid to revive the stagnating economy, but the government in June decided to make the greenback legal tender again to try and tame rampant price increases – a move that they are now trying to walk back.
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Why does this matter?
There are many countries that are trying to reduce their reliance on the US Dollar, and they're using all kinds of means to achieve it.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Sources and further reading
- Rbz introduces gold backed digital currency sundaymail.co.zw
Source: first published by the 311 Institute on 17 May 2023. Cite as: Griffin, M. (2023). Zimbabwe launches a gold backed cryptocurrency to diminish the Dollar. 311 Institute. https://www.311institute.com/zimbabwe-launches-a-gold-backed-cryptocurrency-to-diminish-the-dollar/
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