The Reserve Bank of Zimbabwe -RBZ- has released the latest prices for gold coins and digital tokens which came on board as the Harare administration tried to stave off the depreciation of its currency with unusual ideas before.
In July 2022, it launched gold coins as legal tender to stabilize the local currency.
Holders of physical gold coins, at their discretion, are able to exchange or convert them, through the banking system,” the central bank said in a statement on inception inviting individuals and corporates to use the digital currency that can be bought either in Zimbabwean dollars or foreign currency.
Gold coins are backed by a certain amount of real gold, which helps keep its value stable, this currency is tied to the market value of the gold – unlike a fiat currency.
The Zimbabwe gold-backed digital currency is being used as legal tender and a store of value alongside the Zimbabwean dollar and bond notes.
Users can buy and sell it using Zimbabwean dollars and other foreign currencies.
Ideally, backing a digital currency with gold involves having a certain measure of gold reserves and depends on the current market value of gold.
Zwnews
