The Reserve Bank of Zimbabwe has declared that citizens within the country can now use its gold-backed digital token, ZiG, for making payments.
As per the statement, the bank will employ external auditors to guarantee that the token maintains full gold backing at all times.
Zimbabwe’s Gold Digital Token to Face Lower Tax Than Foreign Currency
The Reserve Bank of Zimbabwe clarified in a statement released on X (formerly Twitter) that ZiG’s value will align with that of Zimbabwe’s physically backed coin:
“The value of ZiG will be at par with the value of the physical Mosi-oa-Tunya gold coin and will remain informed by the international gold price.”
At the time of publication, Gold is trading at $1,859 USD.
It further points out that the Intermediary Money Transfer Tax (IMTT) will be half of the IMTT applied to transactions in foreign currency.
In June 2023, it disclosed a reduction in the IMTT rate for foreign currency transactions from 2% to 1%. This is in line with the rate for local currency transactions.
BeInCrypto recently reported on the potential of a gold-backed digital token to help stabilize the Zimbabwean dollar. This is in light of the ongoing inflationary trends.
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GBDTs were initially introduced as a store of value for citizens to hedge against inflation. However, the utility for transactions now bears a resemblance to that of CBDCs.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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