Zimbabwe's central bank has begun a "pilot" test of a gold-backed digital currency. The digital currency will serve as an alternative to foreign exchange, can be used for peer-to-peer transactions, and is designed to stabilize local currencies. Earlier, the central bank announced plans to launch a P2P platform that would allow holders to trade digital gold tokens. The central bank said the gold-backed tokens would help reduce the need for foreign currencies such as the U.S. dollar and serve as a store of value. As local residents generally ditch their depreciating local currency in favor of dollars, they can now use gold-backed digital tokens as a store of value.