Zimbabwe’s government is also reportedly partnering with Apollo Fintech to launch a gold-backed digital currency for its citizens. On Friday, Apollo announced that it has signed a memorandum of agreement with CBZ Bank — one of the country’s largest commercial banks — to develop three national fintech projects. The proposed gold-backed digital currency is one of the three projects currently being developed by Apollo for CBZ with the backing of the Zimbabwean government.
Given the less-than-stellar record of Zimbabwe’s government on matters relating to its national currency, crypto adoption might present a viable solution. However, asset-backed digital currencies have yet to show any evidence of success.
Venezuela’s oil-backed Petro has so far failed to make any significant progress despite concerted efforts by the country’s government to enforce the adoption of the digital currency. Like Zimbabwe, Venezuela is also suffering from massive hyperinflation, a situation further worsened by economic sanctions imposed on President Nicolás Maduro’s administration by the United States government.
Apollo Fintech CEO Stephen McCullah said he was excited to work with the Zimbabwean government. In a tweet published by the company on Thursday, Apollo identified Zimbabwe as a “priority country” for the live implementation of its suite of national crypto and financial solutions.
If the other yet-to-be-announced projects include an interbank settlement network, then Zimbabwe will be joining the likes of Iran in utilizing fintech to revamp its ailing financial sector.