Zimbabwe Introduces ZiG Currency in Paper and Coin Forms

As a seasoned crypto investor with a keen interest in global economic trends, I’ve witnessed my fair share of currency devaluations and hyperinflation. The recent announcement by the Reserve Bank of Zimbabwe regarding their new digital and physical currency, Zimbabwe Gold (ZiG), has piqued my attention.

The Central Bank of Zimbabwe has introduced a new form of currency called Zimbabwe Gold (ZiG). This currency comes in both digital and physical versions and is supported by gold and stablecoin. The bank developed this currency to help stabilize the national economy and lessen reliance on the US dollar.

On April 29, a physical representation of ZiG – resembling a paper and a coin – started being used as legal tender, and by the end of the day, it had replaced all national banks across Bloomberg’s reports. When ZiG was launched digitally in October, it served as an alternative to the Zimbabwean dollar that had lost value and was fixed at 13.56 per US dollar.

A few months following the central bank’s significant reduction of its interest rate, from 130% to approximately 20%, spearheaded by John Mushayavanhu as the new bank leader, ZiG put forth a proposal. The monetary value equates to 2.5 tons of gold, and the nation holds $100 million in foreign currency reserves. Anticipated inflation rates in the country are projected to drastically decrease from above 55% to a mere 2% per annum.

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2024-05-01 01:57