Zimbabwe Officially Debuts Gold-backed Token as Payment Method
- Zimbabwe has officially debuted its gold-backed digital currency as a payment method for citizens.
- The digital currency called Zimbabwe Gold (ZiG) was available for sale in US dollars and the local currency.
- The currency can be stored in either e-gold wallets or e-gold cards and can be used for business transactions.
- The RBZ first started issuing digital gold-backed tokens in 2022 and is promoting nationwide adoption.
Zimbabwe, a landlocked country in Southern Africa, officially debuted its gold-back digital currency as a payment method earlier this month, according to an announcement. The move seeks to decrease the country’s reliance on the US dollar and strengthen its own economy.
The statement from the Reserve Bank of Zimbabwe (RBZ) said that the gold-backed digital token called Zimbabwe Gold (ZiG) can now be used by the country’s citizens for peer-to-peer domestic transactions. The currency can be stored in either e-gold wallets or e-gold cards and is capable of business transactions as well.
Interestingly, the goal behind the introduction of physical coins as well as the gold-back digital currency is to persuade people to invest in the country’s own resources rather than the US dollar. But it is crucial to note that this is not an easy task considering the country’s triple-digital inflation rates. RBZ Governor John P. Mangudya commented:
“The issuance of the gold-backed digital tokens is meant to expand the value-preserving instruments available in the economy and enhance divisibility of the investment instruments and widen their access and usage by the public.”
The RBZ first started issuing digital gold-backed tokens in 2022 and further promoted their adoption in Zimbabwe, claiming successful results. The central bank also unveiled that on September 28, investors bought the equivalent of 17.65 kilograms (kgs) in ZiG, paying with Zimbabwean and US dollars.
Zimbabwe has faced increasing inflation and currency instability for decades, and it seems to have found a solution in digital assets. The local currency became worthless after the country adopted the US dollar as its official currency in response to a period of hyperinflation.
According to an earlier report from BitcoinWisdom, Mangudya first revealed on May 8 that the country will begin issuing digital tokens backed by gold reserves.
“The issuance of the gold-backed digital tokens is meant to expand the value-preserving instruments available in the economy, enhance the divisibility of the investment instruments, and widen their access and usage by the public,” said Mangudya.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
