2023: Zimbabwe issues gold-backed digital tokens
On May 8, 2023, the Zimbabwean authorities announced the release of a national digital currency backed by gold. It can be used both as a payment instrument and as a means of saving.
Digital gold tokens will be used in the South African country along with the Zimbabwean dollar and bonds. Every digital token in Zimbabwe is backed by 1g of gold. Citizens can buy and sell digital money for Zimbabwean dollars and other foreign currencies. Special accounts are opened for buyers: they look like both digital wallets and special deposits.
The advent of gold-backed digital tokens is supposed to help tackle inflation in Zimbabwe. In addition, the initiative is expected to facilitate certain transactions and will help reduce demand for US dollars among the population. However, some experts believe that digital gold tokens will not be able to stabilize the country's financial system.
 | Although the idea of launching digital gold tokens deserves respect, it is no different from gold coins introduced by the central bank earlier, which could not stop the growth of the money supply, said Godfrey Kanyenze, founder of the Zimbabwe Labor and Economic Development Research Institute (LEDRIZ). |  |
The minimum value of gold-backed digital tokens is set in Zimbabwe at $10 for individuals and $5,000 for legal entities. You can use such currency, among other things, as collateral when applying for loans. It is noted that the appearance of digital gold tokens caused a sluggish reaction from citizens. The fact is that ordinary people in Zimbabwe do not have savings and live in extreme poverty.[1]
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