RBZ Unveils Gold-Backed Digital Tokens as a Store of Value in Zimbabwe
Residents and institutions in Zimbabwe now have the option to conduct domestic transactions using gold-backed digital tokens, known as ZIG tokens, as confirmed by the Reserve Bank of Zimbabwe (RBZ).
Governor John Mangudya announced that these tokens not only serve as a method of payment but also act as a means to preserve value. The RBZ has set the value of ZIG tokens to be equivalent to physical Mosi-au-Tunya gold coins, and their worth is influenced by international gold prices. Banks will facilitate transactions involving ZIG, offering a reduced money transfer tax rate compared to foreign currency transactions.
These tokens, issued in units of one milligram of gold, are accessible to both individuals and institutions, who can use local or foreign currency to purchase them. To ensure transparency and confidence, the project has engaged external auditors to validate the availability and sufficiency of gold backing the ZIG tokens, although they have not disclosed their identities.
In preparation for the launch of gold-backed digital tokens, the RBZ had previously introduced physical coins with a similar purpose. ZIG tokens derive their value from the intrinsic value of gold and the international gold price, which makes them a reliable store of value in a country facing inflation and currency depreciation challenges. This initiative aims to offer Zimbabweans a secure and efficient alternative for financial transactions while also mitigating economic instability. The RBZ’s decision to enlist external auditors underscores their commitment to transparency and ensuring that the gold backing ZIG tokens remains credible and dependable for users.
Clever Robot News Desk 10th October 2023
