Zimbabwe’s Reserve Bank Advances Gold-Backed Tokens for Transactions
The Reserve Bank of Zimbabwe (RBZ) is making strides towards launching gold-backed digital tokens for transactions, positioning them as a potent monetary policy instrument.
RBZ Governor John Mangudya conveyed that the gold tokens will augment the U.S. dollar in domestic transactions, providing a safer and more convenient medium of exchange for retailers. The bank plans to initiate public awareness campaigns to educate citizens about the tokens’ advantages and will collaborate with key stakeholders to issue cards denominated in the gold-backed digital tokens (GBDT). Launched in May to address the demand for U.S. dollars, the GBDTs have proven effective in stabilizing domestic financial and capital markets.
Mangudya emphasized the divisibility nature of the tokens, making them accessible to individuals from various economic backgrounds. Furthermore, individuals have adopted physical gold coins as an alternative store of value, with their low redemption rate indicating the extent of their usage. While a consumer survey unveiled limited knowledge about the central bank digital currency (CBDC), over 70% of respondents expressed readiness to embrace it upon introduction.
Clever Robot News Desk 15th August 2023
