Zimbabwean residents and institutions can now use gold-backed digital tokens as an approved method of payment for domestic transactions, according to the country’s central bank. John Mangudya, the governor of the Reserve Bank of Zimbabwe (RBZ), announced that external auditors will validate the availability and sufficiency of gold to support the tokens, known as ZIG tokens. The introduction of these tokens not only enables residents and institutions to pay for goods and services, but also provides a means of preserving value in the face of inflation and currency depreciation.
The RBZ has been working on the necessary infrastructure to support the use of gold-backed digital tokens, aiming to insulate holders from inflation and currency devaluation. Prior to launching the digital tokens, the central bank had already introduced physical coins to serve the same purpose. The value of the ZIG tokens is determined to be equivalent to the value of the Mosi-au-Tunya gold coin, which is based on the international gold price. Banks will have dedicated accounts for ZIG tokens and will facilitate transactions with the same ease as local and foreign currency transactions. Additionally, the applicable money transfer tax for ZIG token transactions will be lower than that for foreign currency transactions.
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