RBZ says use of Gold Tokens for transactions to start soon, as Mnangagwa threatens to dump US dollar

The Reserve Bank of Zimbabwe (RBZ) of Zimbabwe has said the gold-backed digital tokens will start operating as a medium of exchange for domestic transactions at the end of next month.

The gold-backed digital tokens are Zimbabwe’s own commodity-backed version of Central Bank digital currency (CBDC).

According to Business Weekly RBZ governor, John Mangudya, said the gold-backed digital tokens were an investment product and will also be used for transaction purposes.

They will be in units of milligrammes.

A gramme of gold, which has a current average international spot price of US$63, is equivalent to 1 000 milligrammes.

Mangudya said is the RBZ working with banks and formal retailers, among other stakeholders, in the integration of systems to be used for transacting using the gold-backed digital tokens.

“The next stage now is to open bank accounts for those who have already purchased these tokens,” he said.

Mangudya said the holders of the digital token will get swipe cards from banks, which they can use to transact with any registered trader like supermarkets.

Meanwhile President Emmerson Dambudzo Mnangagwa has repeatedly indicated that the country is moving towards dumping the US dollar.

At one point he declared that the Zimdollar is here to stay as opposed to the US dollar, he urged Zimbabweans to embrace the local currency.

Apparently, speaking during Russia-Africa Summit recently, Mnangagwa said Zimbabwe is ready to embrace other alternative currencies apart from the US dollar.

The Reserve Bank of Zimbabwe Resolutions of the Monetary Policy Committee Meeting held on 28 July 2023, revealed that it is satisfied with the measures taken by the government to stabilize the exchange rate.

Zwnews