On October 5th, the Reserve Bank of Zimbabwe (RBZ) launched a new digital token called Zimbabwe Gold (ZiG) as a payment method. This initiative was first introduced by the central bank in April 2023, with the aim of encouraging local investors to invest in national assets rather than relying on the American dollar. The RBZ has been issuing physical gold tokens since last year and now seeks to expand the value-preserving instruments available in the economy.The gold-backed digital tokens are backed by a physical amount of gold held in the bank’s reserves. They can be stored in e-gold wallets or e-gold cards and are tradeable for both peer-to-peer and business transactions. The RBZ has set different prices for ZiG based on the weight of its gold reserve. For example, one ounce of ZiG can be purchased for $1,910, while 0.1 ounce is priced at $191.According to the RBZ, investors have already bought the equivalent of 17.65 kg in ZiG, using both Zimbabwean and American dollars as payment. Since the previous rounds of digital token sales, the total amount of ZiG sold stands at around 350 kg of gold.Zimbabwe has been facing currency instability and rising inflation for over a decade. In 2009, the country adopted the U.S. dollar as its official currency to combat hyperinflation. However, in 2019, Zimbabwe reintroduced its own currency, which led to a resurgence of currency volatility.The launch of ZiG is part of the RBZ’s efforts to stabilize the economy and encourage investment in national assets. By offering a gold-backed digital token, the central bank aims to provide a value-preserving instrument that is accessible to the public and can help diversify investment options in the country.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Africa |
| Countries | 🇿🇼 |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | Dr. John Mangudya |
| Companies | Reserve Bank of Zimbabwe (RBZ) |
| Currencies | US Dollar, american dollars |
| Securities | None |
