Date: August 13, 2023
The Reserve Bank of Zimbabwe (RBZ) is on the brink of reshaping the nation’s financial realm through its impending launch of a gold-backed digital currency. In a major stride towards the future of digital transactions, the central bank’s governor revealed this week that the project has entered an advanced phase.
Notably, many impoverished African countries witness a substantial portion of their gold resources being exported to wealthier nations, a pattern underscoring the dynamics of gold trade. Among these, South Africa exemplifies the role of gold exports in its economic fabric. Leading the charge, South Africa’s gold exports find their primary destinations in China ($5.05B), India ($4.1B), Switzerland ($3.67B), the United Kingdom ($2.47B), and the United Arab Emirates ($2.08B).
Recent years have highlighted China, India, and Switzerland as the fastest-growing markets for South African gold exports. Within the span of 2020 to 2021, China’s figures surged by an impressive $3.93 billion, trailed closely by India with $2.69 billion and Switzerland at $1.95 billion. These shifts reflect evolving global demands and partnerships in the gold trade landscape.
The Reserve Bank of Zimbabwe (RBZ) is finalising the modalities of rolling out the gold-backed digital tokens as a medium of exchange for domestic transactions to complement the US dollars pic.twitter.com/XbPMue6nT9
— Taitikuvengwalk4nz (@taitikuvengwa) August 10, 2023
As the RBZ progresses, it’s not only gold exports making waves. The bank’s issuance of tokens equivalent to a remarkable 325.02 kilograms of gold stands as a testament to its commitment to the forthcoming digital currency. This strategic move aims to enhance currency stability and public trust.
The RBZ’s groundbreaking plan also includes integrating these digital gold tokens into everyday transactions, a leap expected to redefine Zimbabweans’ financial interactions, from basic purchases to intricate deals. With its gold-backed foundation, this digital currency could potentially curtail the volatility often linked with conventional cryptocurrencies.
