Zimbabwe Gold-Backed Digital Currency: Currency Revolution
According to recent news, on 8 May, the Reserve Bank of Zimbabwe said it would start issuing Zimbabwe Gold-Backed Digital Currency or tokens. The first stage of the launch will see digital tokens for investment, with a vesting period of 180 days.
RBC disclosed that the gold-baked digital tokens would use for a store of value and the means of payment.
Moreover, on 8 May, it decided to initiate issuing the recently noted gold-backed digital currency, according to Zimbabwean Central Bank.
Key Takeaways:
- Zimbabwe’s Reserve Bank to issue gold-backed digital tokens for store of value and payment.
- Two-phase issuance of digital tokens with the first phase for investment purposes with a 180-day vesting period.
- Gold-backed digital tokens aim to enhance investment instrument divisibility and accessibility.
- Digital tokens are available for purchase using foreign or local currency; Mosi-oa-Tunya grant holders can use the local banking system.
- Opposition party warns that Reserve Bank’s gold-backed digital currency initiative may be illegal.
The gold-backed digital currency held up at the Reserve Bank of Zimbabwe (RBZ). This digital currency is expected to accompany the physical gold, which went into circulation in July 2022.
Bitcoin News took to Twitter and made an announcement that the gold-backed tokens aim to enhance the divisibility of the investment instrument and widen their access and use by the public.
John Mangudya, the central bank governor, stated the intentions of the Reserve Bank of Zimbabwe to fight local currency reduction with digital currency. The announcement of the issuance date of digital currency came after the revelation of the Central Bank Governor.
For the greenback with digital currency, Zimbabwe Central Bank hopes to curb the local demand, according to the Bitcoin.com News.
Currency Times took to Twitter and made an announcement that that is Central Bank of Zimbabwe will issue the cold big digital currency in May.
Moreover, the governor of the Reserve Bank of Zimbabwe made a revelation in a statement on 28 April. He said that issuing gold-backed digital tokens aims to expand the value-preserving instruments available in the economy.
The gold-backed digital tokens mean wider access and usage by the public. Additionally, it enhances the divisibility of the investment instrument.
According to the statement, digital currency issuance divides into 2 phases. With a vesting time of 180 days, the issuance of digital tokens is for investment purposes in the first phase.
The gold-backed tokens will save like physical gold, according to the RBZ. Adding to this statement, the expected buyers can obtain digital tokens using foreign or local currency.
Reserve Bank of Zimbabwe also highlighted that Mosi-oa-Tunya grant holders could obtain digital coins using the local banking system.
Jonah Howie took to Twitter and made an announcement that gold-baked digital tokens will serve as both a store of value and means of payment.
However, in the second phase, residents with digital tokens grasp e-wallets or cards. These residents can use such funds to settle the transactions. The digital tokens grasping in the e-gold wallets or e-gold cards will be able to trade. They also facilitate person-to-business (P2B) and person-to-person (P2P) transactions and settlements.
Meanwhile, the spoken person of the opposition party in Zimbabwe named Fadzayi Mahere warned in a tweet. He said the initiative of gold-backed digital currency by the Reserve Bank of Zimbabwe could be illegal.