Zimbabwe moves to cushion its economy with gold-backed tokens
Zimbabwe has introduced a new gold-backed digital currency as it battles to stop re-dollarisation, which President Emmerson Mnangagwa’s government fears will spell doom for the country’s fragile economy.
The country’s central bank said the digital tokens, also known as Zimbabwe Gold (ZiG), that are dominated in milligrams, can be used by both individuals and corporates to transact.
They can be bought from banks in local currency and in US dollars while goods and services will also be priced in ZiG.
Bank clients can transact using ZiG accounts through point of sale machines or via online payments.
In May, Zimbabwe unveiled gold coins for peer-to-peer and peer-to-business transactions as well as to act as a store of value as the country’s currency continued to lose ground against major currencies.