Report: Zimbabwe's Central Bank Set to Launch P2P Platform for Facilitating Gold-Backed Digital Currency Transactions

The Reserve Bank of Zimbabwe has said it is getting close to launching a peer-to-peer platform which will facilitate digital gold token transactions. The central bank said the launch of the platform is expected to help reduce local demand for the greenback. Governor John Mangudya said the tokens have a value which is “linked to the London Bullion Market Association (LBMA).”

‘Gold Token’ Bank Accounts

The Zimbabwean central bank has said it is “finalizing” the establishment of a peer-to-peer (P2P) platform which is expected to facilitate digital gold token transactions. According to a June 17 Sunday Mail report, the Reserve Bank of Zimbabwe (RBZ) hopes to launch the platform towards the end of the month.

The P2P platform is part of the central bank’s measures which seek to diminish local demand for the U.S. dollar and to stabilize the Zimbabwean dollar. The latest digital gold token announcement by the RBZ came just a few weeks after it launched a gold-backed digital currency. As reported by News at the time, the RBZ initially said the tokens “would be used both as a means of payment and a store of value.”

According to the Sunday Mail report, holders of the digital gold tokens will be required to open “gold token” bank accounts which in turn will be converted to a U.S. dollar-benchmarked value system. The report added that the gold tokens will also be added to the mix of currencies which are legal tender in Zimbabwe.

P2P Platform Undergoing Tests

The report revealed that the central bank has sold some 313.9 kilograms of gold-backed digital tokens so far, and also quotes the RBZ governor revealing that the P2P platform is currently undergoing tests.

“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,” Mangudya said.

The RBZ governor also said the tokens have a value which is linked to the London Bullion Market Association (LBMA). He added that the digital gold tokens will be stored in a special wallet known as an e-gold wallet or gold card.

Persistence Gwanyanya, an economist and a member of the central bank’s monetary policy committee, is quoted in the same report hailing the measures taken by the RBZ. Gwanyanya said he expects to start seeing positive results in the coming weeks.

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