Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral

Published May 19, 2023 07:45AM ET Updated May 19, 2023 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral

  • Zimbabwean banks explore gold-backed digital tokens as collateral.
  • The country plans to establish a digital currency for everyday transactions.
  • Singapore, India, and Nigeria are among the countries that have launched CBDC.

In an effort to modernize its financial systems and expand lending options, banks in Zimbabwe are considering the use of the newly released gold-backed digital tokens as collateral for loans.

This move comes as the country’s central bank aims to establish a digital currency that can be used for everyday transactions, prompting financial institutions to adapt their systems to accommodate this innovative form of payment.

In a recent email response to Bloomberg, the Bankers Association of Zimbabwe expressed its support for adopting the gold-backed digital tokens. According to the association, lenders will need to incorporate a third currency into their existing systems to facilitate the acceptance of these tokens as a means of repayment.

Also, the association said in the statement:

As the balances on gold-backed digital tokens transacting currency grow, there is potential for the banks to offer all products that are offered in Zimbabwe dollars and US dollars.

Last week, Zimbabwe’s central bank received 135 applications for the purchase of the newly released tokens. This amounts to a total value of 14 billion Zimbabwe dollars, equivalent to 11 million US dollars.

Furthermore, the tokens are backed by the country’s gold reserves, which currently stand at 140 kilograms or 309 pounds. In a subsequent auction held on Thursday, tokens worth over 71 kilograms of gold were sold.

Notably, the Bahamas, Singapore, India, and Nigeria have already launched digital currencies backed by their respective central banks. On the other hand, the United Kingdom is seeking public input on a central bank digital currency (CBDC).

The post Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral appeared first on Coin Edition.

See original on CoinEdition

Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email