During a monetary policy statement last week, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said the Gold Backed Digital Tokens (GBDT) that it started to issue in May have been a resounding success. The next phase will be to use the tokens for payments. However, using international exchange rates, the amount of gold token issuance so far has been just US$11 million.
Mr. Mangudya believes the digital tokens, combined with the issuance of physical gold coins, are contributing to price and exchange rate stability. For Zimbabwe, that’s a relative matter.
The country is notorious for its unstable currency, peaking in the mid-2000s when monthly inflation reached 79.6 billion percent.
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