Physical version of gold token replaces Zimbabwean dollar

The Reserve Bank of Zimbabwe is introducing Zimbabwe Gold, a gold-backed token, in paper and coin form. After the digital version of the coin made its debut as a means of payment in October, a physical version has now also been created. Zimbabwe Gold now replaces the Zimbabwean dollar and is backed by a basket of gold and foreign currencies.

Gold coins in Zimbabwe

Zimbabwe is a country that has long been plagued by severe inflation. Now the country may be able to build for the future again with a currency that can retain its value better over the long term.

The launch of the so-called ZiG was announced on April 5 and has an exchange rate of 13.56 ZiG against the US dollar.

Digital trading of the coin, which was announced as a gold-pegged currency in October 2023, began on April 2. The transition to the new currency has so far caused a lot of misery on the country’s stock markets.

Companies must pay at least 50 percent of their taxes in ZiG and it can be difficult to obtain those coins.

What does this mean for Bitcoin?

Basically, Bitcoin was built by Satoshi Nakamoto as an alternative to government money. As a way for people to protect themselves from the money printers of governments and commercial banks.

A gold-backed token from the Zimbabwean government will not change that much. After all, the question remains to what extent Zimbabwe is honest about gold coverage.

In addition, the currency is also linked to other government currencies. In that respect, it is not a currency that fully protects against inflation, but it is of course an improvement for the Zimbabwean people.

However, the currency will not be able to match the scarcity of Bitcoin, but it is not alone in this. After all, there is no single currency that can achieve that.

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