Gold tokens to be used as legal tender

01 Oct, 2023 - 00:10 0 Views
Gold tokens to be used as legal tender

The Sunday News

Vuyisile Mlilo, Business Reporter 

THE Reserve Bank of Zimbabwe (RBZ) has announced plans to introduce a new transacting currency known as Zimbabwe Gold (ZiG), which will be backed by the valuable mineral. 

The Gold-Backed Digital Tokens (GBDT) will be used for transactional purposes only in order to ease payments.

In a statement, RBZ said the decision was reached during the Monetary Policy Committee meeting held on 26 September 2023. The committee also stated its commitment to maintaining tight monetary policies.

“ZiG will complement the local currency and foreign currency in facilitating domestic transactions in a more certain and predictable manner given the stability of the international gold price. To engender confidence in ZiG, an independent certification mechanism will be put in place to reassure the public of the availability and adequacy of the gold to back ZiG,” reads the statement.

The introduction of ZiG aims to revolutionise the way Zimbabweans engage in commercial transactions. These digital tokens will serve as a transacting currency, providing an alternative to already existing payment methods

“The Bank will expedite the phase for transacting in GBDT, styled Zimbabwe Gold (ZiG), as an additional payment method alongside existing payment platforms.”  

The RBZ also addressed the inflation trends in the country that have been on a slow downward trajectory for the last few months

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