Zimbabwe Banks Explore Gold-backed Digital Tokens
Banks in Zimbabwe are exploring using recently issued gold-backed digital tokens as collateral for loans in an effort to modernise their financial systems and broaden lending choices.
This move coincides with the country’s central bank’s goal of establishing a digital currency that can be used for everyday transactions, leading financial institutions to alter their systems to accept this novel method of payment.
The Zimbabwe Bankers Association has indicated support for the use of gold-backed digital tokens. According to the association, lenders will need to integrate a third currency into their existing systems in order to accept these tokens as payment.
(With inputs from Shikha Singh)
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