Zim Set to Introduce Gold-Backed Digital Tokens
The Reserve Bank of Zimbabwe (RBZ) through its midterm monetary policy statement announced that it is at an advanced stage in the preparations for the eventual rolling out of Gold Backed Digital Tokens (GBDT) in phase II of the project coded ZiG (Zimbabwe Gold) that will be complementing the use of the US dollar in domestic transactions.
Rudairo Mapuranga
According to the RBZ governor Dr John Mangudya, the ZiG will be used as legal tender and a store of value alongside the US dollar and Zimbabwean dollar.
The move is part of a wider plan by the central bank to stabilise the country’s local unit, which has been faltering against the US dollar, by mopping up excess liquidity in the market.
Ideally, backing a digital currency with gold involves having a certain measure of gold reserves and depends on the current market value of gold.
“The Bank is at an advanced stage in the preparations for the eventual rolling out of GBDT for transactional purposes in Phase II of the project under the code or name ZiG, which stands for Zimbabwe Gold. It is envisaged that the transactional phase will see GBDT complementing the use of the US dollar in domestic transactions.
“The Bank will conduct appropriate awareness campaigns in all national provinces and districts of the country to educate the public on the use and benefits of GBDT.
“The GBDT are envisaged to form the basis for the development of the country’s central bank digital currency (CBDC)since ZiG in its current form and design exhibits most of the characteristics of a CBDC,” Dr Mangudya said.