An ‘Effective Monetary Policy Instrument’: RBZ to Roll Out Gold-Backed Digital Tokens for Transactions
– The Reserve Bank of Zimbabwe (RBZ) is preparing to launch gold-backed digital tokens (GBDT) for domestic transactions.
– The GBDTs will complement the U.S. dollar as a medium of exchange and offer a safer and more convenient option for retailers.
– RBZ governor John Mangudya announced awareness campaigns to educate the public on the benefits of GBDTs.
– Key stakeholders, including the Confederation of Zimbabwe Industries, will allow for the issuance of cards denominated in GBDT.
– The GBDTs have already proven to be effective in restoring normalcy to the domestic financial and capital markets.
More Than 70% Willing to Use CBDC
– The divisibility nature of digital gold tokens makes them accessible to people from all economic backgrounds.
– Only 2% of the physical gold coins sold have been redeemed, indicating their use as an alternative store of value.
– Residents have limited knowledge about the central bank’s digital currency, but 71.7% express willingness to use it if introduced.
Hot Take:
The RBZ’s rollout of gold-backed digital tokens as a monetary policy instrument is a significant step towards a more convenient and value-preserving medium of exchange in Zimbabwe. With a majority of residents willing to use a central bank digital currency, there is potential for further financial innovation and stability in the country.
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