Reserve Bank of Zimbabwe introduces gold-backed digital token ZiG
The post Reserve Bank of Zimbabwe introduces gold-backed digital token ZiG appeared on BitcoinEthereumNews.com. The Reserve Bank of Zimbabwe (RBZ) has officially launched its gold-backed digital token dubbed Zimbabwe Gold (ZiG) as a payment option for retail use nationwide. In a statement, the central bank confirmed that ZiG will operate as legal tender, mandating banks and enterprises to accept the digital currency. In the future, commercial banks are expected to maintain dedicated ZiG accounts like other currencies in the country. The RBZ noted that each digital token will be backed by gold in its reserves, with its value pegged to the international gold price. The central bank disclosed that it would take only half of the applicable intermediated money transfer tax (IMTT) to increase the adoption of the new payment method. “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 investments and widen their access and usage by the public,” said RBZ Governor John Mangudya. The central bank has been exploring options to achieve a sense of normalcy amid the inflation and economic downturns, while citizens have turned to the U.S. dollar to protect the value of their wealth, although the scarcity of greenback complicates the process for ordinary Zimbabweans. To prevent the dollarization of the local economy, the RBZ began testing the waters with a gold-backed digital token in April, achieving impressive adoption levels. Buoyed by the initial wins, the central bank announced its intent to launch a retail version that analysts described as a central bank digital currency (CBDC). “On account of their effectiveness in mopping liquidity, the GBDTs have since proved to be an effective monetary policy instrument with strong potential to help restore normalcy to the domestic financial and capital markets within the short term,” said the RBZ back in August. Critics have poked holes into the real-world usage of ZiG,…
The post Reserve Bank of Zimbabwe introduces gold-backed digital token ZiG appeared on BitcoinEthereumNews.com.
The Reserve Bank of Zimbabwe (RBZ) has officially launched its gold-backed digital token dubbed Zimbabwe Gold (ZiG) as a payment option for retail use nationwide. In a statement, the central bank confirmed that ZiG will operate as legal tender, mandating banks and enterprises to accept the digital currency. In the future, commercial banks are expected to maintain dedicated ZiG accounts like other currencies in the country. The RBZ noted that each digital token will be backed by gold in its reserves, with its value pegged to the international gold price. The central bank disclosed that it would take only half of the applicable intermediated money transfer tax (IMTT) to increase the adoption of the new payment method. “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 investments and widen their access and usage by the public,” said RBZ Governor John Mangudya. The central bank has been exploring options to achieve a sense of normalcy amid the inflation and economic downturns, while citizens have turned to the U.S. dollar to protect the value of their wealth, although the scarcity of greenback complicates the process for ordinary Zimbabweans. To prevent the dollarization of the local economy, the RBZ began testing the waters with a gold-backed digital token in April, achieving impressive adoption levels. Buoyed by the initial wins, the central bank announced its intent to launch a retail version that analysts described as a central bank digital currency (CBDC). “On account of their effectiveness in mopping liquidity, the GBDTs have since proved to be an effective monetary policy instrument with strong potential to help restore normalcy to the domestic financial and capital markets within the short term,” said the RBZ back in August. Critics have poked holes into the real-world usage of ZiG,…
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