GBDT (digital token) explained

Gold-backed digital token, abbreviated as GBDT is an investment instrument used in Zimbabwe. It was formerly known as ZiG, but its name was taken by a newly created gold backed currency, the Zimbabwean ZiG, thus renaming this investment instrument to GBDT.[1] [2] The digital coins are not loanable.[3]

Background

Zimbabwe has been struggling with inflation and exchange rate instability since reintroduction of Zimbabwean Dollar in February 2019. In a bid to restore order and stopping speculative behavior on local currency, the central bank introduced a gold backed digital coin, which have some currency features.[4] [5]

Features

The value of one GBDT token unit was defined as one milligram of 99% fine gold on the first day of trade for the currency.[6]

Performance

A total of 736.5 kg was bought by corporates and individuals as of 28 February 2024, under this scheme.[7]

See also

Notes and References

  1. Web site: RBZ unveils new currency – The Herald . 2024-04-08 . www.herald.co.zw.
  2. Web site: 2024-04-05 . RBZ Mandates Conversion of All Zimdollar Balances to ZiG . 2024-04-08 . en-US.
  3. Web site: Weekly . eBusiness . 2023-08-29 . Zimbabwe Gold (ZiG) not loanable – RBZ . 2024-04-08 . eBusiness Weekly . en-GB.
  4. Web site: Zimbabwe's central bank launches new digital transacting currency-Xinhua . 2024-04-09 . english.news.cn.
  5. Web site: 2023-04-28 . Zimbabwe plans to launch digital currency backed by gold . 2024-04-09 . AP News . en.
  6. Web site: NATIONAL ASSEMBLY HANSARD 14 DECEMBER 2023 VOL 50 NO 21 . 2024-04-06 . Parliament of Zimbabwe . en-US.
  7. Web site: 2024-02-28 . Gold Sold . 2024-04-09 . Chronicles Zimbabwe.