On October 5, the gold-backed digital token called Zimbabwe Gold (ZiG) was officially launched as a payment method. The launch was announced by the Reserve Bank of Zimbabwe (RBZ).
RBZ introduced its new project for the first time in April 2023. The central bank stated that each issued digital token will be backed by a physical amount of gold held in the bank's reserves. RBZ started issuing physical gold tokens last year and claimed that they were successfully adopted.
The mission behind both the physical coins and the newly introduced ZiG is to persuade local investors to invest in national assets and not American dollars, a no-easy task in a country with triple-digit inflation levels. RBZ Governor Dr. John Mangudya earlier said:
“The issuance of gold-backed digital tokens aims to expand value preserving tools in the economy, increase the divisibility of investment instruments, and expand public access and use.”
Digital tokens can be stored in e-gold wallets or e-gold cards and exchanged for both P2P and transaction transactions.
RBZ reported various levels of prices at which ZiG could both be bought and sold, depending on the weight of its gold reserves. So, you can buy 1 ounce of ZiG for $1,910 and 0.1 ounce of ZiG for $191. On September 28, investors purchased the equivalent of 17.65 kg in ZiG, paying in both Zimbabwean and US dollars, according to the bank. The total amount of ZiG sold since the previous digital token sale rounds is around 350 kg of gold.
Zimbabwe has been struggling with currency instability and rising inflation for more than a decade. In 2009, the country adopted the US dollar as its official currency in response to a period of superinflation in which the local currency became nearly worthless. Zimbabwe sought to stimulate the domestic economy by reintroducing its own currency in 2019. However, this move led to an increase in currency volatility.
RBZ introduced its new project for the first time in April 2023. The central bank stated that each issued digital token will be backed by a physical amount of gold held in the bank's reserves. RBZ started issuing physical gold tokens last year and claimed that they were successfully adopted.
The mission behind both the physical coins and the newly introduced ZiG is to persuade local investors to invest in national assets and not American dollars, a no-easy task in a country with triple-digit inflation levels. RBZ Governor Dr. John Mangudya earlier said:
“The issuance of gold-backed digital tokens aims to expand value preserving tools in the economy, increase the divisibility of investment instruments, and expand public access and use.”
Digital tokens can be stored in e-gold wallets or e-gold cards and exchanged for both P2P and transaction transactions.
RBZ reported various levels of prices at which ZiG could both be bought and sold, depending on the weight of its gold reserves. So, you can buy 1 ounce of ZiG for $1,910 and 0.1 ounce of ZiG for $191. On September 28, investors purchased the equivalent of 17.65 kg in ZiG, paying in both Zimbabwean and US dollars, according to the bank. The total amount of ZiG sold since the previous digital token sale rounds is around 350 kg of gold.
Zimbabwe has been struggling with currency instability and rising inflation for more than a decade. In 2009, the country adopted the US dollar as its official currency in response to a period of superinflation in which the local currency became nearly worthless. Zimbabwe sought to stimulate the domestic economy by reintroducing its own currency in 2019. However, this move led to an increase in currency volatility.