According to local reports, Zimbabwe is now getting even closer to implementing the Gold Backed Digital Tokens (GBDT) as a form of currency for everyday transactions by the general public.
The introduction of tokenized digital coins was undertaken with the aim of strengthening the national currency while also providing an alternative investment avenue for the market, diverging from the typical practice of pursuing the U.S. dollar on the unofficial market.
Zimbabwe’s🇿🇼 Gold-Backed Digital Token Now Being Tested for Regular Transactions
The aim of this initiative is to establish a form of legal tender that can be used for peer-to-peer and peer-to-business transactions, with the intention of preserving value in the country's… pic.twitter.com/Y0hON0GFSL
— BitKE (@BitcoinKE) July 12, 2023
These instruments can be exchanged between individuals and businesses as a method of payment and are anticipated to contribute to the stabilization of the Zimbabwean dollar.
While unveiling the mid-term Monetary Policy Statement (MPS), Governor John Mangudya of the Reserve Bank of Zimbabwe (RBZ), disclosed that efforts are presently in progress to elevate the utilization of these instruments by establishing GBDTs as a means for conducting transactions.
“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 with the use of the U.S. dollar in domestic transactions,” he said.
The RBZ Governor mentioned that comprehensive awareness initiatives will be carried out across all provinces and districts of the country to enlighten the public about the usage and advantages of GBDT.
This instrument is anticipated to serve as the foundation for the nation’s central bank digital currency (CBDC) given that ZiG, in its present structure and features, shares many traits with a CBDC.
During the MPS, it was disclosed that the Gold Coins maintained their significance as a key monetary policy tool absorbing more than $35 billion in Zimbabwean dollars from a cumulative count of 36,059 coins as of July 14, 2023.
The initial maturity subsequent to the 180-day vesting duration occurred on January 25, 2023, and up to now, only 769 gold coins (constituting 2% of the overall sold quantity) have been reclaimed. According to RBZ, this serves as evidence that it is indeed acknowledged as a reliable store of value.
Mangudya said GBDT has also fared so well on the back of increasing market demand in the economy.
“As at July 21 2023, the Bank had conducted 11 issuances of GBDT, receiving a total of 590 applications to purchase tokens valued at ZW$50.50 billion and US$7,794.87. The Bank, therefore, issued 325,024,524 milligrams equivalent to 325.02 kgs of gold,” he added.
Follow us on Twitter for the latest posts and updates
_______________________________________
_______________________________________
