Zimbabwe Nears Completion of Legal Framework for Gold-Backed Digital Tokens
- Rudolph Harmon
- May 1, 2023
- Crypto, News
- Crypto, Digital Tokens, RBZ, Zim, Zimbabwe
- 0 Comments
The Reserve Bank of Zimbabwe(RBZ) intends to roll out a digital currency supported by gold in order to stabilize the Zim dollar. These tokens are basically electronic money underpinned by the central bank’s gold reserves, which will provide holders of the local currency with an opportunity to safeguard against its instability.
The laws for those digital tokens backed by gold are nearly finished, says the RBZ. These tokens will directly correlate to real-gold reserves held by the bank and be put into circulation this month. People can acquire and use these tokens as a means of saving or conducting transactions and resolving debts.
Digital Tokens Coming in May
The RBZ recently announced that commencing May 8, a series of new digital tokens will be issued in addition to the already existing gold coins.
This shift is designed to provide more flexibility when it comes to investments, expanding the audience and ability of utilization for all. There’s finally a concise legal outline for the tokens, putting an end to all the speculations about their launch without proper regulations.
According to a tweet posted by Fadzayi Mahere, the spokesperson for Citizens Coalition for Change (CCC), the implementation of gold-backed digital tokens goes against the Reserve Bank Act.
Phase Chart for Digital Tokens
The RBZ officially announced last Friday that the first phase of its plan has been set: people can invest in digital tokens with a six-month grace period, which can then be cashed out as actual gold coins. Banking institutions will offer both Zimbabwe and foreign currency transactions to help make it happen.
During phase two, electronic gold wallets and cards-carrying gold-backed tokens will be ready for trading. This means digital coins can be used for P2P and P2B settlements and transactions, acting both as money and preserving value.
According to experts, the incorporation of tokens in trading could potentially make gold coins more widely used and accessible, ultimately expanding the range of valuable commodities available in the market. This is due to the tokens’ ability to enhance the worth-storing function of gold coins, increase their divisibility, and strengthen the Zimbabwe dollar.