Reserve Financial institution of Zimbabwe launches gold-backed digital token ZiG

• RBZ has launched a gold-backed ZiG digital token to handle foreign money instability and inflation.
• ZiG presents a secure and versatile funding possibility, gaining investor curiosity.
• Buyers have bought 350kg of gold by ZiG, signalling a shift from the US greenback.

The Reserve Financial institution of Zimbabwe (RBZ) has formally launched the Zimbabwe Gold (ZiG) digital token, backed by bodily gold reserves, to handle foreign money instability and rising inflation within the nation.

Zimbabwe has grappled with foreign money instability and hovering inflation for over a decade. After hyperinflation rendered the native foreign money practically nugatory in 2009, the nation adopted the US greenback as its official foreign money. Nonetheless, in 2019, Zimbabwe reintroduced its personal foreign money, solely to face renewed foreign money volatility.

ZiG: Gold-backed cryptocurrency

In April 2023, the RBZ launched the idea of the Zimbabwe Gold (ZiG) digital token, underpinned by bodily gold reserves held within the central financial institution. The first goal of this initiative is to supply a secure and helpful funding avenue for native buyers, encouraging them to shift their focus from the US greenback to nationwide belongings.

ZiG tokens may be saved in e-gold wallets or e-gold playing cards, providing a handy and versatile cost technique for customers. These digital tokens are tradable for each peer-to-peer and enterprise transactions.

Buyers’ response

The RBZ reported that the worth of ZiG tokens varies relying on the burden of the gold reserve, with choices starting from 0.1 ounce to 1 ounce. As of September 28, 2023, buyers had bought the equal of 17.65 kilograms of gold in ZiG, using each Zimbabwean and American {dollars}. Roughly 350 kilograms of gold have been bought by this revolutionary digital token since its introduction.

The issuance of gold-backed digital tokens goals to increase the array of value-preserving devices accessible within the Zimbabwean economic system, improve the divisibility of funding choices, and enhance accessibility for most people.