---
title: "Zimbabwe Will Issue Gold-Backed Digital Tokens From Next Month"
description: "Zimbabwe’s central bank plans to sell a gold-backed digital currency to the public from May 8 in another attempt to stabilize its tumbling currency and offer an alternative to the US dollar."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-04-28-zimbabwe-will-issue-gold-backed-digital-tokens-from-next-month/"
published: "2023-04-28T18:46:19"
lang: "en-ZA"
word_count: 257
---

# Zimbabwe Will Issue Gold-Backed Digital Tokens From Next Month

> Zimbabwe’s central bank plans to sell a gold-backed digital currency to the public from May 8 in another attempt to stabilize its tumbling currency and offer an alternative to the US dollar.

By Bloomberg · Published 28 April 2023, 20:46 SAST

## Key points
- Zimbabwe is joining the digital currency revolution, with plans to introduce gold-backed tokens as a value-preserving alternative to its depreciating local currency.
- Zimbabwe plans to introduce a gold-backed digital currency in two phases.
- The currency will be used for investment and transactions, and is meant to expand the value-preserving instruments available in the economy.
- $100 million of gold is needed for the project, which was approved by the MPC in March.
- Nigeria became the first African country to introduce a digital currency in 2021.

## Content

The tokens, to be sold through banks in local and foreign currency at a 20% margin above the interbank mid-rate, will be introduced in two phases, central bank governor John Mangudya, said in an emailed statement on Friday. The currency will initially be used for investment and then for transactions.

“The issuance of the gold backed digital tokens is meant to expand the value-preserving instruments available in the economy and enhance the divisibility of the investment instruments and widen their access and usage by the public,” Mangudya said.

This year, Zimbabwe’s local currency has declined 35% against the US dollar, which superseded it as the preferred currency for transactions. The central bank has been building gold reserves and acquiring other precious minerals since the introduction of a policy in 2022 that compels miners to pay part of their royalties in cash and metal. It’s banking on the stash to help it with the latest plan.

Persistence Gwanyanya, a member of the central bank’s monetary policy committee, said Monday that the authority needs about $100 million of gold for the project.

| Read more about Zimbabwe’s currency: |
| --- |
| - [Zimbabwe’s Digital-Currency Plan Needs $100 Million of Gold](https://www.bloomberg.com/news/articles/2023-04-24/zimbabwe-s-digital-currency-plan-needs-100-million-of-gold) - [Zimbabwe Rules Out Ditching Local Currency as Dollar Use Soars](https://www.bloomberg.com/news/articles/2023-04-22/zimbabwe-dollar-to-stay-finance-minister-ncube-says) - [US Dollars Dethrone Zimbabwe’s Currency For Second Time](https://www.bloomberg.com/news/articles/2023-04-06/usd-use-dethrones-zwl-for-second-time) |

The plan for the digital currency was approved by the MPC in March, eight months after Zimbabwe [introduced](https://www.bloomberg.com/news/articles/2022-07-04/zimbabwe-turns-to-gold-coins-to-ease-us-dollar-demand) gold coins as a store of value to try help support the local unit. Nigeria in 2021 became the [first country in Africa](https://www.bloomberg.com/news/articles/2021-10-25/nigeria-starts-digital-currency-after-banning-crypto-exchange) to introduce a digital currency.