Zimbabwe prepares to launch its government-endorsed cryptocurrency backed by the gold market, an inclusive finance propaganda and solution to the economic challenges. The gold-backed token the Zimbabweans set to release in its local market has reportedly sprung the International Monetary Fund (IMF) consent that cautions the crypto market adoption.
The Reserve Bank of Zimbabwean is keen on shirking the IMF’s consent that focuses on abolishing the crypto market adoption. While the local apex bank reported the gold-backed token will resolve the country’s macroeconomic challenges which the Zimbabweans are aware it’s a long shot to accomplishing a standard economy.
“A careful assessment should be conducted to ensure the benefits from this measure outweigh the costs and potential risks including, for instance, macroeconomic and financial stability risks, legal and operational risks, governance risks, cost of forgone FX reserves,” an IMF spokesman said.
The Zimbabwean apex bank highlighted macroeconomic challenges the local cryptocurrency debut will resolve such as liberating the foreign exchange market, and volatility in the local unit of cryptocurrency distribution. For context, the Zimbabwean Dollars, its fiscal currency continues a bearish battle with the American Dollar which also has an impact on the units of token distribution after the token launch.
The Zimbabwean government preaches to rival the American dollar valuation and equality with its local ZWD currency on the foreign exchange market. Still, the local apex bank has started selling its cryptocurrency to investors in exchange for American dollars rather than its local ZWD currency.
On Monday, individual investors bought the gold-backed token for $10, while corporate investors are optioned to pay a fortune of $5000 per Zimbabwean digital coin. Still, the local apex bank’s major consent hovers on reducing the demand for the American dollar in exchange for units of its local currency.
The Zimbabwean apex bank also promises to make the government-endorsed token to be accessible by the common market whereby indigenes will be able to transact with the cryptocurrency as a legal tender. An approach to financial inclusion in countries like Nigeria has reportedly attempted to adopt debuting tokens such as eNaira and a wallet to hold and barter the local cryptocurrency.
The Reserve Bank of Zimbabwe prepares to debut its digital currency to elevate its macroeconomic standard and alter its indulgence in the foreign exchange market. Still, the IMF contradiction to the Zimbabwean adoption of the crypto market is appalling as the risks are identified to null the campaign rather than support the country with beneficiary outcomes to adopting/debuting a local token.