{"id":20409,"date":"2023-04-30T10:47:05","date_gmt":"2023-04-30T10:47:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/central-bank-to-issue-gold-backed-digital-currency-in-early-may-africa-bitcoin-news\/"},"modified":"2023-04-30T10:47:05","modified_gmt":"2023-04-30T10:47:05","slug":"central-bank-to-issue-gold-backed-digital-currency-in-early-may-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/central-bank-to-issue-gold-backed-digital-currency-in-early-may-africa-bitcoin-news\/","title":{"rendered":"Central Bank to Issue Gold-Backed Digital Currency in Early May \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Reserve Bank of Zimbabwe (RBZ) has said it will start issuing gold-backed digital tokens on May 8. The first phase of the launch will see the digital tokens being issued for \u201cinvestment purposes with a vesting period of 180 days.\u201d The RBZ also revealed that the gold-backed digital tokens \u201cwould be used both as a means of payment and a store of value.\u201d<\/strong><\/p>\n

Gold-Backed Tokens Additional Value-Preserving Instruments<\/h2>\n

According to the Zimbabwean central bank, it plans to start issuing the recently mooted gold-backed digital currency on May 8. The digital currency, which will be backed by the gold held at the Reserve Bank of Zimbabwe (RBZ), is expected to complement the physical gold coins that went into circulation<\/a> in July 2022.<\/p>\n

The announcement of the digital currency\u2019s issuance date came just a few days after the central bank governor, John Mangudya, was quoted revealing the RBZ\u2019s intention to fight local currency depreciation with gold-backed digital currency. Also, as reported<\/a> by Bitcoin.com News, Zimbabwe\u2019s central bank hopes to curb the local demand for the greenback with the soon-to-be-launched digital currency.<\/p>\n

However, in a statement<\/a> issued on April 28, the RBZ governor revealed that the issuance of the gold-backed digital tokens \u201cis meant to expand the value-preserving instruments available in the economy.\u201d The gold-backed tokens are also intended to \u201cenhance divisibility of the investment instruments and widen their access and usage by the public.\u201d<\/p>\n

Gold-Backed Digital Currency as a Store of Value<\/h2>\n

As per the statement, the issuance of the digital currency will be split into two phases. The first phase will see the digital tokens being issued for \u201cinvestment purposes with a vesting period of 180 days.\u201d According to the RBZ, the gold-backed tokens will be redeemed in the same way as physical gold coins are redeemed. Prospective buyers can acquire digital tokens using local or foreign currency, the statement added.<\/p>\n

The RBZ also suggested that current holders of the Mosi-oa-Tunya gold coins will be able to acquire the digital coins using the local banking system.<\/p>\n

Under the second phase, residents with digital tokens held in e-wallets or cards will be able to use such funds to settle transactions.<\/p>\n

\u201cThe gold-backed digital tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-to-Business (P2B) transactions and settlements. It, therefore, means that the gold-backed digital tokens would be used both as a means of payment and a store of value,\u201d the RBZ said in the statement.<\/p>\n

Meanwhile, Fadzayi Mahere, the spokesperson of Zimbabwe\u2019s main opposition party, warned<\/a> in a tweet that the RBZ\u2019s gold-backed digital currency initiative could be illegal.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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