To help the citizens from rising inflation in the country, Zimbabwe’s central bank is planning to launch Gold pegged tokens.
Zimbabwe is not a good region for the Crypto sector but still, retail trading of crypto assets under the jurisdiction of Zimbabwe is not illegal. In 2017 & 2018, The Zimbabwean Central Bank ordered all the financial and private institutions in Zimbabwe to halt trading in cryptocurrency. A later statement by the country’s central bank ordered not to use crypto in the payment system.
Since 2008, Zimbabwe has been a worse economy, as it failed to maintain its economical situation under bad macroeconomic situations. In 2022, the Zimbabwean currency saw a 90% downfall ie value against the dollar. To fight against high inflation, citizens moving toward investment in Gold, Silver & Bitcoin like top assets.
On 23 April 2023, The Sunday Mail reported that Zimbabwe’s central bank will launch Gold pegged digital token.
Every token will be pegged by the equivalent value of physical gold, while many people are considering this move as an adoption of the Central Bank Digital Currency (CBDC) in the form of digital Gold.
Zimbabwe will allow all the citizens to use the Zimbabwean dollar to purchase Gold tokens, to remain stable with their monetary value.
The Reserve Bank of Zimbabwe
is set to introduce a gold-backed digital currency to stabilize the local currency. This move will allow small amounts of Zimbabwean dollars to be exchanged for the digital gold token, enabling more Zimbabweans to hedge against currency… pic.twitter.com/Onmb7a4tg2
— Brickstreet Shop (@BrickstreetShop) April 24, 2023
RBZ Governor Dr. Mangudya said that Central Bank will reduce the supply of the Zimbabwean dollars and further increase the circulation of Gold tokens in physical as in tokenized forms.
Mangydya also said that the decision has been taken because of the surging demand for foreign currency outside the need for foreign services use.
“What we have noticed is that demand for foreign currency, apart from being driven by the need to import goods and services in Zimbabwe, is also viewed as a store of value,” the governor said.
Few crypto experts shared their opinion on the Zimbabwe’s Gold token plan and suggested to use existing cryptocurrencies like Gold Coin (GLC) and Meld Gold by Algorand (MCAU).
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