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RBZ readies for third issuance of gold backed digital tokens

Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) is now set to issue a third tranche of gold backed digital coins towards the end of this week.

The details were revealed in a recent update made by the central bank.

“Applications under the third issue of the RBZ gold backed digital coins should be submitted through the banks during the course of the week for settlement and issuance on Friday 26 May 2023,” said RBZ.

The RBZ also announced that under the tranche issued on No.2 /2023 on Thursday 18 May 2023, the bank received 106 applications valued at ZW$8 billion and US$2 100 to purchase gold backed digital tokens.

In an innovative, if drastic, step to scale down stubbornly high inflation numbers, the Reserve Bank of Zimbabwe  introduced digital tokens backed by gold reserves to complement the national currency.

The digital tokens can be transferred between people and businesses as a form of payment and are projected to stabilise the Zimbabwean dollar.

According to Reserve Bank of Zimbabwe Governor John Mangudya, the digital tokens “can be used in person-to-person and person-to-business transactions and settlements.”

After Nigeria launched its e-Naira digital currency in 2021 and Ghana and South Africa began piloting their versions, several other African countries – including Namibia, Zambia, Madagascar, Eswatini, Mauritius, Tanzania, Rwanda, Kenya, and Uganda – are exploring the possibility of rolling out their digital currencies.

The digital tokens of Zimbabwe are unique, however, because they are backed by gold, which sets them apart from other countries.

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Gold Coin and Gold-backed Digital Token Prices – 23 May 2023

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