RBZ to introduce digital tokens

Leafias Mazviro

The Governor of the Reserve Bank of Zimbabwe, Dr John Mangudya has said the central bank is at an advanced stage for the rolling out of the gold-backed digital tokens for transactional purposes in the country.

Dr. Mangudya said the transactional phase will complement the use of both ZW$ and US dollar in the domestic economy and run under the code or name ZiG, for Zimbabwe Gold.

“It is envisaged that the transactional phase will see gold-backed digital tokens complementing the use of the US dollar in domestic transactions.”

Dr. Mangudya said the bank will undertake an awareness campaign in all the national provinces in preparation for Phase II (Transactional Phase) of the Gold-Backed Digital Tokens (GBDT), which is at an advanced stage.

“The gold-backed digital tokens are envisaged to form the basis for the development of the country’s central bank digital currency since ZiG in its current form and design exhibits most of the characteristics of a central bank digital currency,” Dr Mangudya said.

Dr. Mangudya said the gold-backed digital tokens were an investment product, which Zimbabweans would use for transacting alongside Zimbabwe dollars and US dollars.

Dr. Mangudya earlier said the RBZ was working with all stakeholders, chiefly banks and retailers, on the integration of systems to be used for transacting using the gold-backed digital tokens.

“Consultations with various stakeholders including the Confederation of Zimbabwe Industries (CZI) and the Zimbabwe National Chamber of Commerce (ZNCC) and the Retailers Association of Zimbabwe (RAZ) have already been undertaken and banks are now configuring their systems to allow for the issuance of cards which will be denominated in ZiG,” Dr Mangudya said.

Individuals will be able to open bank accounts for purposes of holding the gold-backed tokens, whose units they can buy using either Zimbabwe dollars or US dollars in line with the prevailing global price of bullion.

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