- This is how the country wants to overcome hyperinflation
- The release will take place in two stages, with the first CBDC only available as an investment vehicle
- The opposition has criticized the project and urged residents not to invest in it
The Reserve Bank of Zimbabwe (RZB) this week released details on the initiative to launch a CBDC backed by gold.
The regulator will begin issuing digital currency on May 8, with the first phase for investment purposes only.
We have previously reported on this project. The CBDC is expected to help local authorities solve problems with hyperinflation and reduce demand for USD among the local population.
The RZB issued a press release yesterday, May 4, with a timeline for CBDC issuance. In the first phase, the tokens will be issued “for investment purposes” with a maturity of 180 days.
The currency will be backed by physical gold Mosi-oa-Tunya coins, which went into circulation in 2022. The issue is scheduled to begin on May 8. Tokens can be purchased within two days for local or foreign currency.
The threshold value of tokens will be $10 for individuals and $5 thousand for legal entities. In the case of payment in national currency, a margin of 20% of the interbank rate will be charged.
This is necessary because of the discrepancy between the real and nominal ratio of the Zimbabwean dollar to the U.S. dollar.
The second phase of the CBDC will be put into circulation. But exactly when this will happen is still unknown.
It is interesting that Fadzai Mahere of Zimbabwe’s main opposition party (CCC) has strongly criticized the initiative.. She warned that the RZB project is in fact illegal.
“Good morning, Zimbabwe. What is your currency? Does anyone know or understand?
How can something so important not be regulated by law, depend on the whims of the Central Bank and be as unstable as aspirin in a stake?
We need new leaders,” stressed the lawyer.