The government of Zimbabwe is reportedly looking to partner with Apollo Fintech to launch a gold-backed digital currency for its citizens.
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On Friday, Apollo Fintech announced that it has signed a memorandum of association with CBZ Bank to develop three national fintech based projects. CBZ Bank is one of the largest commercial banks in Zimbabwe.
“Apollo Fintech has signed a memorandum of association with the government-owned CBZ, a diversified and largest financial institution in Zimbabwe,” Apollo said in a statement.
Among the three projects, is the gold-backed digital currency which is currently being developed by Apollo for CBZ Bank with the approval of the Zimbabwean government.
Other projects includes:
A commodity exchange, which will serve investors looking for alternative investment options with a choice to invest in commodities such as gold.
A RTGS value storage coin which will be backed by United States dollar.
Meanwhile, around November, 2019, the Lesotho Nation signed a MoU with Apollo Foundation to help in the development and implementation of blockchain technology in various departments and intiatives of the Lesotho government.
The Apollo foundation is reportedly working to have Apollo all-in-one currency (APL) be used as national currency, starting with Africa then beyond.
Apollo currency combines features of commonly used cryptocurrencies in an unregulatable way.
If the Apollo currency succeeds, it means that the national government, institutions, merchants, and consumers will use APLs for economic activities including transactions, remittances, sales, deposits, and storage of value.
While the Zimbabwe’s government has recorded a high inflation rate in the previous years since 2007, adopting cryptocurrency might be a viable solution. Nevertheless, the use of asset-backed digital currencies is yet to show any evidence of success.
Like Zimbabwe, Venezuela is also suffering from massive hyperinflation. Venezuela’s oil-backed Petro has so far failed to make any tangible progress despite the government’s effort in encourage the adoption of the digital currency.
In a tweet published by the company on Thursday, the company said;
“Apollo will be working with CBZ, a gov backed entity and the largest bank in Zimbabwe, to develop and implement 3 of Apollo’s national solutions for the Nation of Zimbabwe.”
Other possible African nations on the list affected with the hyperinflation includes Sudan by 44 percent, Liberia by 23 percent, Sierra-Leone by 17 percent and Angola by 17 percent.