Zimbabwe Launches Gold-Backed Digital Currency To Replace US Dollar – Zimbabwe launched gold-backed local digital tokens, aimed at reducing reliance and dependence on the US dollar. the Reserve Bank of Zimbabwe (RBZ) announced that the gold-backed tokens will be fully backed by physical gold held by the Bank.
- Citizens can the currency to carry out peer-to-peer payments and transactions.
- Gold-backed digital tokens are introduced to expand the value-preserving instruments available in the economy.
- The step will help in enhancing the divisibility of the investment instruments and widening the access and usage by the public.
Gold-Backed Token – Two Phases
First Phase
- The tokens will be given for investment purposes with a vesting period of 180 days and redeemable in the same way as the existing physical gold coins.
- The tokens will be available for sale in both foreign currency and the Zimbabwe dollar with the help of banks.
- Banks will make dedicated or specific accounts for the gold-backed digital tokens (e-gold wallets or e-gold cards).
Phase Two – Person-to-Person (P2P) Transactions
- The gold-backed digital tokens in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-toBusiness (P2B) transactions and settlements.
About Zimbabwe –
Capital: Harare
Dialling code: +263
Currency: United States Dollar
Population: 1.6 crores (2021) World Bank
President – Emmerson Mnangagwa
Vice-President – Constantino Chiwenga
Also Read –