The Reserve Bank of Zimbabwe has launched a gold-backed digital token called Zig
RBZ has launched a gold-backed Zig digital token to address currency instability and inflation. ZiG offers a stable and versatile investment option, meeting the needs of investors. Investors bought 350 kilograms of gold in the zigged, reflecting the change in the US dollar.
The Reserve Bank of Zimbabwe (RBZ) has officially launched the Zimbabwe Gold (ZiG) digital token, backed by physical gold reserves, to address currency instability and rising inflation in the country.
Zimbabwe has struggled with currency instability and high inflation for more than a decade. In the year After hyperinflation rendered the local currency worthless in 2009, the country adopted the US dollar as its official currency. However, in 2019, Zimbabwe re-introduced its own currency with a renewed currency exchange rate.
Zig: A currency backed by gold
In the year In April 2023, the RBZ introduced the concept of the Zimbabwe Gold (ZIG) digital token, backed by gold reserves held in the central bank. The main objective of this initiative is to create a stable and profitable investment channel for local investors and encourage them to shift their focus from US dollars to national assets.
Zig Tokens can be stored in e-Gold wallets or e-Gold cards, providing users with a convenient and versatile payment method. These digital tokens are traded for both peer-to-peer and commercial transactions.
Investor response
According to the RBZ, the price of Zig Tokens varies depending on the weight of the gold stock, with options ranging from 0.1 oz to 1 oz. In the year Since September 28, 2023, investors have bought 17.65 kilograms of gold per zig using Zimbabwean and US dollars. With this innovative digital token, approximately 350 kg of gold has been sold since its introduction.
The issuance of gold-backed digital tokens aims to expand the array of value storage instruments available in the Zimbabwean economy, diversify investment options and increase access to the general public.
