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The Reserve Bank of Zimbabwe (RBZ) latest Gold Backed Digital Tokens sales mopped up a total ZW$246,5 million going a step further in cleansing the market of bad excess cash normally used to fuel parallel market activities.
The tokenised digital coins were introduced in a bid to shore up the national currency and also serve as an alternative investment option for the market as opposed to the conduct of chasing after the US$ on the parallel market which was the norm.
The instruments can be transferred between individuals and businesses as a form of payment and are projected to stabilise the Zimbabwean dollar.
A trading update on the latest Gold Backed Digital tokens sales shows that a significant amount of local currency was mopped up.
“The RBZ would like to notify the public of the results of Gold Backed Digital tokens Issue no. 8/2023 held on Thursday 29 June 2023 .The bank received 28 applications valued at ZW$246,5 million and US$155,01 to purchase gold backed digital tokens .
“Total milligrams of gold purchased 0, 55 kgs of gold. Cumulative milligrams of gold purchased 321, 62 kgs,” the RBZ said.
The amount signifies a significant decline from the figure of ZW$3,5 billion worth of tokenised digital tokens sold in the previous week, partly confirming the dwindling ZW$ usable balances in the economy.
Backed by a certain amount of gold, which helps keep its value stable, this currency is tied to the market value of the gold – unlike a fiat currency.
Users can buy and sell it using Zimbabwean dollars and other foreign currencies.
Backing a digital currency with gold involves having a certain measure of gold reserves and depends on the current market value of gold. New Zimbabwe
