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- 1 The Reserve Bank of Zimbabwe (RBZ) announced the transformation of the Gold-backed Digital Token into a payment method.
- 2 Zimbabwe is looking to persuade local investors to finance national assets despite American dollars, permitting both physical and digital coins.
Cryptocurrency, a digital asset stored on blockchain technology, expanded its roots worldwide and Zimbabwe is no exception. The potential of decentralized finance melted Zimbabwe’s heart and made the country enter the ocean of cryptocurrency. The launch of a Gold-backed digital token under the name Zimbabwe Gold (ZiG) and the issuing of the token as a legal tender showcase the devotion of Zimbabwe towards digital assets.
Continuing the chain, RBZ made a new announcement related to Gold-backed Digital Token on October 5.
What is RBZ Actually Cooking?
A piece of news from RBZ’s office on October 5, filled the local investors of Zimbabwe with joy. The announcement was related to the transformation of the Gold-backed Digital Token into a payment method.
ZiG, the gold-backed digital token is all set to transform into a payment method, the announcement was made by RBZ on October 5. The bank specified that each ZiG would be backed by a physical amount of gold held in the bank’s reserves. The project was introduced by the central bank in April 2023 and began issuing the same legal tender on May 8.
On successful adoption and smooth functioning of the project, RBZ is moving towards new plans. In the race to become a champion of digital currency, RBZ also wishes to take care of the local investors and national assets. With the mission to persuade local investors to finance in national assets and not American dollars, the central bank is working with both the physical and recently introduced ZiG.
Zimbabwe faced currency instability and high inflation for more than a decade. Result of this, the nation adopted the US dollar as its official currency in 2009, making the local currency worthless.
Year 2019, come up with a big change for Zimbabwe with the reintroduction of its own currency. To strengthen the national currency, RBZ is putting all efforts with a focus on both physical and digital currency.
The launch of the Gold-backed Digital Token and the transformation of the same into a payment system showcase the efforts of RBZ to strengthen the national currency.
Gold-Backed Digital Token at a Glimpse
Gold-backed cryptocurrency is a derivative asset that helps individuals access, trade, purchase, and hold physical gold at any time and at any location. The token simply mitigates the challenges associated with volatility, illiquidity, transport inconvenience, and transferability. Also, the tokens can be stored in e-gold wallets or e-gold cards.
The price of ZiG can highly depend on the weight of its gold reserve. One can purchase 1 ounce of ZiG for $1,910. The total amount of Gold-backed cryptocurrency sold since the sales stands at around 350 Kg of gold. In addition, on September 8, the local investors purchased the equivalent of 17.65 Kg in ZiG.
Conclusion
Gold-backed Digital Token, ZiG is all set to transform into a payment system, as per RBZ’s announcement. The project was launched and issued by RBZ to strengthen the native currency and to remain a strong player in the cryptocurrency marketplace.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
