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Peer-to-peer Bitcoin transactions in Zimbabwe recently reached a new high after President Emmerson Mnangagwa reinstated the Zimbabwe dollar. The ban also prohibits the settlement of local transactions in the British pound, South African rand, the US dollar, and other foreign currencies.

The Reserve Bank of Zimbabwe (RBZ) has said it is now "at an advanced stage in preparations for the rolling out of gold-backed digital tokens (GBDTs) for transactional purposes." The central bank said the rollout would see the gold tokens complement the U.S. dollar "in domestic transactions as retailers will be offered a safer, more convenient, and value-preserving medium of exchange." This will be Phase II of the Zimbabwe Gold (ZiG) project. The RBZ reports that "GBDTs have proved to be an effective monetary policy instrument with strong potential to help restore normalcy to the domestic financial and capital markets within the short term." GBDTs, fully backed by physical gold held at the RBZ, were introduced in May 2023.

The Reserve Bank of Zimbabwe (RBZ) has reportedly started testing the feasibility of a digital currency backed by gold that will be accepted as a legal tender for peer to peer and peer to business transactions. The hope is that it will stanch store-of-value motivated conversions out of Zimbabwe dollars into U.S. dollars, that is depressing the former's value in foreign exchange markets.

The Reserve Bank of Zimbabwe (RBZ) is reportedly set to introduce a gold-backed digital currency to serve as legal tender in the country. The move will allow small amounts of Zimbabwean dollars to be exchanged for the digital gold token. RBZ Governor John Mangudya said that this will represent the first steps by the central bank towards using the country's gold reserves to tame Zimbabwe dollar depreciation. https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency

The Reserve Bank of Zimbabwe (RBZ) will introduce a gold-backed digital currency on May 8. They will not be pegged to any of the country's units of account (Zimbabwe dollars, U.S. dollars and South African rand). The digital coins will be priced 20% above market and marketed as investments. However, digital wallets will be made available in a later phase to facilitate person-to-person payments with them.

The Reserve Bank of Zimbabwe has developed a roadmap for "adoption" of central bank digital currency (CBDC) in Zimbabwe, according to its August 11, 2022 Mid-Term Monetary Policy Statement. The next step will be imminent the publication of a consultation paper aimed at "fostering a broad and transparent public dialogue regarding the potential benefits and risks of CBDC."

The Reserve Bank of Zimbabwe (RBZ) launched a new "structured" currency called "Zimbabwe Gold" (ZiG) that will be anchored to a weighted value of the central bank's precious metal (mainly gold) and foreign currency reserves. As of April 5, 2024, the RBZ had reserve assets of US$100 million in cash and 2,522 kgs of gold (US$185 million) to back the entire local currency component of reserve money which stood at ZW$2.6 trillion (US$90 million). ZiG notes and coins shall be issued in denominations made up of 1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG, and 200ZiG, but no mention is made of what becomes of the ZiG (now GBDT) wallets, assuming such wallets ever existed.

Reserve Bank of Zimbabwe (RBZ) Deputy Governor Innocent Matshe reportedly said the RBZ will proceed with plans to a central bank digital currency (CBDC), undeterred By the slow adoption of Nigeria's eNaira. In addition to sending a team to learn from the Central Bank of Nigeria's experiences, the RBZ has also reportedly sent teams with a similar mission to countries like China and Ghana.

The Reserve Bank of Zimbabwe (RBZ) will start selling its gold-backed digital currency on May 8, 2023. Applications must be for a minimum of US$10 and US$5,000 for individuals and corporates and other entities, respectively, in U.S. dollars and local currency. The US dollar price will be "informed or guided" by the international gold price as determined by the London Bullion Market Association PM fix. Payment in local currency will be at a 20% margin above the willing-buyer willing-seller interbank mid-rate. Applications will close on May 10, 2023. https://www.rbz.co.zw/documents/press/2023/May/Gold-Backed_Digital_Tokens_Prospectus_-_4_May_2023_1.pdf

The IMF has reportedly called on the Reserve Bank of Zimbabwe to carefully consider the benefits of issuing a gold-backed digital currency versus the potential macroeconomic, financial stability, governance, legal and operational risks, plus the cost of forgone FX reserves. The IMF urged country authorities to rather use conventional measures to address economic challenges, such as maintaining a tight monetary-policy stance and accelerating the liberalization of the foreign-currency market.

The Zimbabwe Gold (ZiG) digital asset backed by a physical gold held in the Reserve Bank of Zimbabwe's (RBZ's) reserves officially launched as a payment method. The RBZ first started issuing Mosi-oa-Tunya physical gold-backed tokens in 2022, and the ZiG was introduced in April 2023. The digital tokens can be stored in either e-gold wallets or e-gold cards and are tradeable for peer-to-peer and business transactions. https://twitter.com/ReserveBankZIM/status/1709929505144652153

The Reserve Bank of Zimbabwe (RBZ) is reportedly developing a regulatory sandbox for cryptocurrency companies in the country.

Mobile money platforms have been banned in Zimbabwe as the country's local currency continues to lose value, with authorities desperately hoping to arrest the decline. But the move has left subscribers and users stranded in an economy which sees a huge portion of transactions flow through mobile money platforms due to long-term cash shortages at the banks. https://www.rbz.co.zw/index.php/publications-notices/notices/press-release/879-press-statement-on-the-suspension-of-monetary-transactions-on-phone-based-mobile-money-platforms-27-june-2020

As part of its efforts to explore CBDC, the Reserve Bank of Zimbabwe is conducting a consumer survey that closes on December 7.

The ban on electronic money transactions in Zimbabwe has reportedly sent trade in the economy into a tailspin. The government has suspended mobile money transactions except those for receiving essential payments for goods and services as well as paying for utilities like water, electricity and airtime. However, it also suspended the Ecocash mobile payments platform, which accounts for about 94% of the market. While the government insists individual transactions are still open, on the ground, things are more "intricate" now.

The Reserve Bank of Zimbabwe clarified the measures taken to deal with illicit trading on phone-based money transfer platforms, assuring the public that "bona fide" transactions will be processed normally. It was money agents who had been suspended from mobile banking transactions, and emphasized that all mobile money liquidations should be done through the banking system.

Zimbabwe's central bank is exploring the use of a digital currency rather than allowing cryptocurrencies as legal tender. Governor John Mangudya said that "we believe in central bank digital currency which is basically trying to say 'how do we have an e-Zimbabwe dollar as opposed to cryptocurrency'." The central bank plans to send a team to Nigeria to learn from their experiences in launching the first digital currency in Africa in October.

"The RBZ says that these tokens can be used for payments, with tokens available for purchase via banks, which will create dedicated e-gold wallets and cards to facilitate person-to-person or person-to-business payments, both online and offline. This is, in effect, a gold-backed central bank digital currency. The economics of gold as a defence against inflation are somewhat heterodox but not absurd. Introducing a CBDC is a complex business, however. Questions around implementation abound. Not only will the central bank have to retain the currency reserves to ensure that it can redeem the coins and tokens, it will also have to maintain the gold reserves backing the tokens."

The Reserve Bank of Zimbabwe announced that it is actively exploring the feasibility of issuing CBDC, including specific design considerations, opportunities and risks to the monetary and financial system. In this context, the Bank is developing a roadmap for adopting CBDC, encompassing the feasibility and assessment stage currently taking place, policy design stage based on results of the feasibility study and implementation modalities.

"The Zimbabwean Finance Minister, Mtuli Ncube, has said his government plans to halt the local currency's freefall by linking it to gold and establishing a currency board. Ncube said these measures could permanently end the local currency's volatility."