Zimbabwe is looking to gold to “expand value-preserving instruments,” launching a gold-backed digital currency last week as the nation suffers from hyperinflation and its currency continues to diminish in value. The move is an “interesting experiment to see if locals will warm up to a more stable currency and trust the nation’s central bank in its endeavors,” Peter Spina, president of GoldSeek.com, told MarketWatch.
The Reserve Bank of Zimbabwe said it was issuing the gold-backed digital tokens in a move to “expand value-preserving instruments” available in the nation’s economy, as well as “enhance the divisibility of the investment instruments and widen their access and usage by the public.” “A gold-backed currency, whether digital or not, is something that was once thought to be out of the question,” said Brien Lundin, editor of Gold Newsletter. “But as the fiat money experiment, which has essentially been in place since 1971, has progressed along the predictable path, the idea of backing currencies with gold will increasingly be discussed.”The offering The tokens are meant for investment purposes, with a vesting period of 180 days — available for sale at banks for purchase with local or foreign currency and redeemable in the same way as existing physical gold coin. Reserve Bank of Zimbabwe Gov. John Mangudya said the digital tokens would be fully backed by …
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