Gold Coin and Gold-backed Digital Token Prices – 18 January 2024

The Reserve Bank of Zimbabwe (RBZ) has released the latest prices for gold coins and digital tokens.

Also sometimes referred to as a crypto token, digital coin, or often simply, token or coin, a digital coin is a digital representation of value (in Zimbabwe’s case backed by gold) or rights that is offered and sold for the purpose of facilitating access to, participation in, or development of a distributed ledger, blockchain, or other digital data structure.

The central bank introduced gold coins and digital tokens few years ago as to allow citizens and corporates to store Value of their money.

This came in the face of the local currency losing its purchasing power on a daily basis.

RBZ governor John Mangudya says the gold-backed digital tokens are fully backed by physical gold held by the central bank.

“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 investment instruments and widen their access and usage by the public,” he says.

Apparently, renowned American economic analyst Steve Hanke is on record calling on the Zimbabwean government to dump its local currency and fully dolarise.

However, the Harare administration is saying it won’t take that route as no country ever developed without its own money.

Zwnews