RBZ Launches ZiG As A Means Of Payment
The Reserve Bank of Zimbabwe (RBZ) has introduced the Zimbabwe Gold-Backed Digital Token (ZiG) as a means of payment.
In a statement, RBZ Governor John Panonetsa Mangudya said ZiG will become one of the means of payment for domestic transactions, in addition to its use as a store of value.
The central bank chief also sought to assure stakeholders that there will be adequate gold to back ZiG at any given time. Reads the statement:
In line with the resolutions of the Bank’s Monetary Policy Committee at its meeting of 26 September 2023, the Bank wishes to advise that with effect from 5 October 2023, ZIG will become one of the means of payment for domestic transactions, over and above its value-preservation purpose.
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.
Banks will maintain dedicated ZiG accounts and intermediate transactions in ZiG in the same way they intermediate transactions in local and foreign currency.
The applicable intermediated money transfer tax (IMTT) will be half of the IMTT applicable to transactions in foreign currency and the relevant legal instrument to that effect will soon be published.
The Bank has enlisted the services of external auditors to validate the availability and adequacy of gold to back ZiG at any given time.
On Tuesday, the RBZ said both individuals and corporates will be able to transact using the Gold-Backed Digital Tokens.
The central bank highlighted the key points to note when transacting with ZiG which are as follows:
1. As a bank customer you approach your bank to buy ZiG tokens (denominated in milligrams) payable in ZW$ or US$.
2. Minimum purchase of ZiG by individuals is US$10 and corporates is US$5 000 or the Zimbabwean Dollar equivalent.
3. Once ZiG has been purchased, the holder will, in addition to their existing bank account, now have a ZiG account denominated in milligrams of gold.
4. The bank client can now transact using their ZiG account through swipe and online payments.
5. A holder can keep ZiG balances for transacting or store-of-value purposes with a redemption option in US$ or ZW$ depending on their preference after a 180-day vesting period.
6. Goods and services will also be priced in ZiG.
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