Zimbabwe Issues Digital Currency

Reserve Bank of Zimbabwe (RBZ) made a statement about its new digital currency on Thursday, May 4. Reserve Bank of Zimbabwe has invited individuals and financial institutions across the country to invest in the soon-to-be-launched gold-backed digital token. According to RBZ’s announcement, individuals who will apply for tokens must invest at least 10 dollars in the digital currency, and companies at least 5 thousand dollars. Reserve Bank of Zimbabwe announced in April that the tokens will be released on May 8. RBZ’s aim in issuing this gold-backed digital currency is to combat the country’s unstable local currency.

In 2022, Zimbabwe inflation had risen to 285 percent. In March 2023, this rate decreased to 87.6 percent. However, the instability of the country’s economy still continues. The central bank is issuing a gold-backed digital currency to prevent this instability.

Reserve Bank of Zimbabwe has divided the token issuance and redemption into two phases. In the first phase, tokens will be issued for investment purposes and offered for sale through banks. The statement stated that the tokens will be held in digital wallets and can be used for person-to-person and person-to-business transactions in the second phase. “Physical gold holders will be able, at their discretion, to convert or exchange their physical gold into gold-backed digital tokens through the banking system,” RBZ said.