By Alois Vinga
ECONOMIC experts believe that the recent move by the Reserve Bank of Zimbabwe (RBZ) to incept digital gold coins is a step in the right direction and consistent with global best practices.
The bullion coins were introduced as a measure to provide the market with an alternative investment option after authorities managed to establish a trend, where both companies and individuals with excess local currency would opt to buy the greenback as a store of value
Last week the central bank announced the decision to launch digital coins which are backed by physical coins in a bid to enhance both divisibility and tradability.
While authorities have not shared finer details on the mechanics around the inception of the digital coins experts have commended the initiative.
Speaking to NewZimbabwe.com economist, Dr Prosper Chitambara said the move is consistent with global trends.
“A number of countries across the globe have introduced digitally backed bullion instruments which have a number of advantages like increased security making the asset’s possession safer.
“They also come with a higher degree of convenience as trading can take place beyond geographical boundaries,” he said.
Economist Persistence Gwanyanya who also sits in the RBZ Monetary Policy Committee expressed hope that the instrument will deal with the problem of untimely exchange rate depreciation in the economy.
“The problem we have in our economy is not really about the quantity of money in the economy but the concentration of the money which is spewed around a few people at a given point in time and more recently we have seen that problem emanating from contractors.
“The moment they are paid, the exchange rate depreciates there and then. So these digitalised gold coins will now be available for such people as an alternative opposed to chasing after scarce foreign currency from the and in the process this will ease the panic which comes with the pressure to offload the ZWL,” he said.
Gwanyanya said the digital currency will also serve as a hedge against value erosion since the worth of the coins appreciates in value on the scale of the local currency depreciation.
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