By Alois Vinga
THE Reserve Bank of Zimbabwe (RBZ) latest Gold Backed Digital Tokens (GBDT) sales have disposed of 6,7 kgs of gold in the process mopping up a significant amount of excess local currency in the market.
The GBDT also known as Zimbabwe Gold (ZiG) was injected in the market late last year as a means of payment for domestic transactions over and above its value preservation purpose.
Apart from serving as an investment instrument ZiG is bringing additional convenience to the country’s payment systems. The unit runs alongside other existing payment platforms such as the Zimbabwean dollar as well as the US dollar among other currencies.
“The RBZ would like to notify the public of the results of the RBZ GBDT Tokens Issue No. 03/2024 held on Tuesday , 30January 2024. The Bank received five applications valued at ZW$5 billion and US$19,94 to purchase gold backed digital tokens and the full amount was allotted.
“Total milligrams of gold purchased amounted to 6,70 kgs with cumulative milligrams purchased 574,1 kgs,” the statement said.
While gold coins might be a means of distributing a non-dollar-denominated store of value throughout the economy, the RBZ’s aim is for them to form the basis of a medium of exchange as well.
Obviously a troy ounce of gold is not a practical unit for day-to-day purchases. The bank is releasing smaller denominations but, more importantly, it has released digital tokens (denominated in gold milligrams), which represent ownership of gold coins held in the vault.