We are already on record for calling Zimbabwe the kingdom of funny money. Our trillion dollars notes are highly sought after by collectors accross the world. The Zimbabwean government has always been bold and inventive when it comes to introducing new currencies most people do not know it but the ZWL is mostly a digital currency made up mostly of bank balancies and little else. Having had a taste of digital currencies Zimbabwe is now on the cusp of introducing the public to it’s latest currency the ZiG. A lot of people have questions on what this all means. We have answers.
The new currency will be known as the ZiG.The acronym “ZIG” stands for “Zimbabwean Investment Gold.” It is the official name assigned to the digital tokens that are backed by gold.
No, ZIG is not a physical form of currency. It is a digital token backed by gold. The value of ZIG is linked to the price of gold, but it exists and operates as a digital asset rather than a physical banknote or coin.
The idea is that ZiG will be widely accepted and used in the economy just as widely as bond notes were and USD are. The exact acceptance and usability of ZIG tokens for transactions may vary. It is expected that ZIG tokens can be used for peer-to-peer transactions, such as transfers between individuals, as well as peer-to-business transactions. The RBZ may provide further guidelines and information on the specific platforms, services, and merchants that accept ZIG tokens as a form of payment.
Generally you will be able to obtain them through trade and transactions just the same way you get USD or any other forms of money. Currently however, individuals may be able to obtain ZIG tokens by applying to the RBZ and exchanging RTGS and other fiat currency or other digital assets, subject to the guidelines and regulations established by the RBZ.
The name “Zimbabwean Investment Gold” reflects the underlying concept of the digital tokens being backed by physical gold, thereby conveying the sense that ZiG will be providing a secure and tangible investment opportunity for individuals in Zimbabwe. The name emphasizes the connection between the digital tokens and the inherent value of gold as an investment asset. The authorities want people to trust this new currency and emphasizing its gold bedrock is key
At rhe moment you can only buy digital gold tokens by applying to the RBZ. However the modalities for allowing peer to peer transactions are being finalized by the RBZ and other stakeholders. The specific launch date for ZIG has not been provided in the information provided but it seems imminent, the RBZ is currently testing. It is recommended to follow official sources or announcements from the Reserve Bank of Zimbabwe (RBZ) for the latest updates on the launch timeline.
ZIG is a gold-backed digital token designed to serve as a value-preserving instrument in the economy. Each ZIG is measured in milligrams, representing 1/1000th of a gram of gold. The value of ZIG in foreign currency will be determined based on the international gold price set by the London Bullion Market Association (LBMA) PM fix. The tokens will be integrated into bank accounts, cards, and point-of-sale (POS) systems, allowing individuals to transact using ZIG as a form of payment. Efforts are also being made to enable ZIG on Zimswitch cards and ZIPIT transactions, further expanding its usability.
Yes, the intention is for ZIG to be enabled and accessible across all banks in Zimbabwe.
The RBZ has initiated a dry-run to test the feasibility of a digital currency backed by gold. This digital currency, known as the digital dollar, is intended to be used as a legal tender for peer-to-peer and peer-to-business transactions. The goal of this initiative is to preserve value and address the rapidly falling exchange rate.
According to Nebson Mupunga, the director of economic research and policy implementation at the RBZ, Zimbabweans will soon be able to use the digital dollar backed by gold for their transactions. This move is expected to provide stability to the exchange rate.
The IMF has expressed concerns about the potential depletion of Zimbabwe’s gold reserves due to the introduction of the digital dollar. While the digital token backed by gold may offer a solution to the store of value issue, the IMF cautions against the potential impact on the country’s gold reserves.
Zimbabwe’s Gold-Backed Digital Tokens (ZIG) are a digital currency backed by gold, rather than physical banknotes or coins. Each ZIG token represents a specific value of gold measured in milligrams. The tokens are transacted electronically using blockchain technology or a similar decentralized system. While the process for acquiring ZIG tokens may vary, individuals can hold them in digital wallets and use them for transactions. While there is no explicit mention of converting ZIG tokens back into physical gold at present, further information may be obtained from official sources. ZIG tokens offer a unique digital currency solution, enabling peer-to-peer and peer-to-business transactions, subject to the guidelines set by the Reserve Bank of Zimbabwe (RBZ).