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Zimbabwe launches gold-backed digital currency

Zimbabwe launches gold-backed digital currency

Zimbabwe rolled out the use of its gold-backed digital currency on Monday. This is following the after-proposed plan for the project in April.

Reserve Bank of Zimbabwe, disclosed the plans to introduce a gold-backed digital currency as the country’s newest legal tender in the country in April

The digital currency is expected to supplement the country’s Mosi-oa-Tunya fiat gold coins, which were introduced in 2022. With it, the country intends to attract more residents to its gold sector and combat currency depreciation and inflation, which is expected to reach 285% in 2022.

The RBZ detailed preparations for the currency’s launch last Thursday. The tokens will be released only for investment reasons in the first phase, which begins today, May 8, and will be available through banks.

Zimbabwean residents and businesses have been invited to subscribe to the token. Individuals must apply for the tokens for a minimum of $10, while financial institutions must apply for a minimum of $5,000.

Also, there are plans for users to store the tokens in digital wallets and use them for peer-to-peer and other commercial transactions.

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