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The Reserve Bank of Zimbabwe (RBZ) is launching the physical counterpart of ZiG tokens, a digital currency that is supported by the nation’s gold reserves.
The Reserve Bank of Zimbabwe is rolling out ZiG banknotes into circulation, initiating the distribution of physical reserves of the currency to all banks across the nation. The highest denomination of the new currency is 200 ZiG ($15), while the lowest banknote is 1 ZiG ($0.01). This information has been reported by Bloomberg.
Zimbabwe Gold (ZiG) is a token that is underpinned by physical gold held at the Reserve Bank of Zimbabwe (RBZ). The digital currency was officially recognized as the country’s legal tender in October 2023.
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Lawrence Nyazema, President of the Bankers Association of Zimbabwe, stated that all 19 banks in the nation had been supplied with the banknotes by Monday evening, April 29. He mentioned that the upcoming weeks will be critical for ZiG as the amount of currency in circulation is expected to reach a substantial value during this timeframe. Nyazema also encouraged Zimbabweans to utilize both the digital and physical forms of the currency for transactions.
The announcement to introduce ZiG was made by John Mangudya, Governor of the RBZ, in early April 2023. The primary aim of this initiative was to establish a dependable and stable national currency, as well as to safeguard the fiat savings of local citizens from market fluctuations. By mid-April 2023, the first phase of token sales commenced, during which the government raised approximately $39 million.
The shift to the new currency resulted in turmoil within the local stock exchange. The volume of stock trading and transaction values significantly decreased as the exchange adjusted stock prices to the new currency unit. This decline in trading volumes led to a reduction in revenues for some local brokerage firms by at least 50%. Conversely, the introduction of the new currency contributed to a decrease in interest rates from 130% to 20%.
Сообщение Zimbabwe’s Digital Currency Issued as Physical Banknotes появились сначала на CoinsPaid Media.
