The Reserve Bank of Zimbabwe (RBZ) is making significant strides in its efforts to stabilize the country’s economy and reduce dependence on the U.S. dollar. As part of its strategy, the central bank is finalizing the establishment of a peer-to-peer (P2P) platform to facilitate digital gold token transactions. With the platform set to launch later this month, the RBZ aims to enhance the Zimbabwean dollar and diminish local demand for foreign currency. 

In a bid to promote financial stability, the RBZ  introduced gold-backed digital tokens to serve as both a means of payment and a store of value, earlier this year. According to the Sunday Mail report, holders of the digital gold tokens will be required to open gold token bank accounts, which will subsequently be converted into a U.S. dollar-benchmarked value system. 

The RBZ is currently in the testing phase for its P2P platform, which will enable seamless transactions using the gold-backed digital currency. The central bank plans to roll out this platform in the coming weeks. Dr. John Mangudya, the RBZ Governor, affirmed that the tokens’ value will be linked to the London Bullion Market Association (LBMA). Furthermore, the digital gold tokens will be securely stored in specialized wallets known as e-gold wallets or gold cards.

Dr. Mangudya also noted, “The second phase of the rollout of the digital gold tokens, which will enable transacting using the gold-backed digital currency, will start this month, and we are currently testing the system before launch.” 

The report also revealed that the central bank has sold some 313.9 kilograms of gold-backed digital tokens so far.

Persistence Gwanyanya, an economist and member of the central bank’s monetary policy committee, commended the RBZ’s initiatives and expressed optimism about their impact. The economist also emphasized that he anticipates positive results to emerge in the coming weeks while highlighting the recent wholesale auction conducted by the RBZ.

The RBZ’s forthcoming P2P platform for digital gold tokens marks an important step in Zimbabwe’s economic transformation. By harnessing the power of blockchain technology and gold-backed assets, the central bank aims to enhance financial stability and boost economic growth in Zimbabwe.