Zimbabwe to introduce another form of payment called ZiG

Zimbabwe’s central bank is working on expediting another form of payment called ZiG, or Zimbabwe Gold, through the use of gold-backed digital tokens.

The bank’s monetary policy committee said the central bank has sold digital tokens totalling 332.5 kg by 19 September.

It was, therefore, expediting the use of the digital tokens as an additional payment method.

“ZiG will complement the local currency and foreign currency in facilitating domestic transactions in a more certain and predictable manner given the stability of the international gold price,” the Monetary Policy Committee said in a statement after its meeting on Tuesday.

“To engender confidence in ZiG, an independent certification mechanism will be put in place to reassure the public of the availability and adequacy of the gold to back ZiG.”

Zimbabwe is already using the local currency as well as multiple currencies mainly the United States dollar and the South African rand.

The local currency is variously known as the Zimbabwe dollar, bond and RTGS.

Although the MPC was satisfied by the stability of the local currency, it has dropped by nearly $800 since the 23 August elections.

(1094 VIEWS)