Zimbabwe Trusts Golden CBDC

Posted on 05/08/2023

After being known for hyperinflation for decades, Zimbabwe is shifting its focus to gold.

The Reserve Bank of Zimbabwe has encouraged individuals and institutions to subscribe to its new gold-backed digital token. Individuals will need US$ 10 and institutions no less than US$ 5,000 to begin. The first issue date is scheduled for Monday, May 8, 2023. Inflation in Zimbabwe ran at 285% last year.

The new CBDC will be issued as investment grade first, with a second phase designed to promote individual transactions. Gold will be welcomed. The Reserve Bank of Zimbabwe said: “Holders of physical gold coins, at their discretion, will be able to exchange or convert, through the banking system, the physical gold coins into gold-backed digital tokens.”

Zimbabwe may be getting some help for its economy in the form of commodities. An Australian company, Invictus Energy, has announced oil, gas, and helium deposits were found there. It’s too soon to tell what plan specifics may entail, but these deposits are intended to be extracted.

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