Zimbabwe turns gold-backed digital token into a payment method Cryptocurrency scrgruppen

On October 5, the gold-backed digital token called Zimbabwe Gold (ZiG) was officially launched as a means of payment. It was the start Announce By the Reserve Bank of Zimbabwe (RBZ).

The first time the Fed introduced its new project was in April 2023. The central bank specified that each digital token issued would be backed by a physical amount of gold held in the bank’s reserves. The Federal Reserve Bank (RBZ) began issuing physical gold tokens last year, claiming successful adoption.

The mission behind both the physical currencies and the newly introduced ZiG coins is to convince local investors to put their money in national assets and not the US dollar, no easy task in a country suffering from a triple-digit level of inflation. As Fed Governor Dr. John Mangudya said earlier:

“The issuance of gold-backed digital tokens aims to expand the value preservation tools available in the economy, enhance the divisibility of investment instruments, and expand their access and use by the public.”

Digital tokens can be stored in either e-gold wallets or e-gold cards and can be traded for both P2P and merchant transactions.

Related: Cousteau is selling all gold bullion, but is it a better investment than Bitcoin?

RBZ mentioned Several levels of prices, which ZiG can be both, depending on the weight of its gold reserves. Thus, one can buy 1 ounce of ZiG for $1910 and 0.1 ounce for $191. According to the bank, on September 28, investors Buyer This is equivalent to 17.65 kg in zigzag, and payment is made in Zimbabwean and American dollars. The total amount of ZiG, which has been sold since previous rounds of digital token sales, is approximately 350 kg of gold.

Zimbabwe has been suffering from currency instability and high inflation for more than a decade. In 2009, the country adopted the US dollar as its official currency in response to a period of hyperinflation that rendered the local currency practically worthless. In an attempt to revitalize the local economy, Zimbabwe reintroduced its own currency in 2019. However, this move was followed by a return of currency fluctuations.

magazine: Singer Vérité’s fan-first approach to Web3, music NFTs, and community building