Zimbabwe's central bank has utilized nearly 140 kilograms of its gold reserves to back the launch of its new digital currency.
The bank's first auction of the gold-backed digital tokens received 135 applications worth 14 billion Zimbabwean dollars.
The aim is to tackle the high demand for US dollars in Zimbabwe's economy and the resulting decline in the value of the local currency.
However, the International Monetary Fund criticized the decision, cautioning Zimbabwe to liberalize its foreign-exchange rate instead of depleting its reserves.
To stabilize the currency amidst rising inflation and a struggling economy, Zimbabwe has also introduced other measures such as gold coins and short-term interest rate increases.
