Currently, the Zimbabwe gold-backed digital currency that was introduced in 2023, is in use as legal tender and a store of value alongside the Zimbabwean dollar and bond notes. According to state-owned media reports, the country’s central bank currently holds roughly 793kgs of gold in reserves valued at roughly $49 million at the current price with plans to grow reserves to around $100m.
It’s been more than ten years since then US Treasury Secretary Jacob Lew announced a new project to redesign the nations currency, beginning with the $10 note.
At the time of the announcement, the designs for the new $10 bill were expected to be unveiled in 2020 to correlate with the 100th anniversary of 19th Amendment, which granted women the right to vote.
Earlier this year, the US Government hit a new milestone. The amount of government debt in the United States has grown to exceed $33.88 Trillion as a result of overspending by elected officials. The growing U.S. government debt is a complex issue with significant implications for American citizens and taxpayers.
With September’s purchases, central banks have added a net 337 tons of gold in Q3. It was the second-highest third-quarter total on record behind 2022.
Gold is considered a crucial element in diversifying a central bank’s foreign reserves because it bears little correlation with other assets, such as currencies and bonds.
While many are monitoring the developments in BRICS, the United States continues to hold the largest stockpile of gold reserves in the world by a considerable margin.
When trade happens in many different currencies, you have high costs of arbitrage of exchange rates between countries. When approaching dedollarization, central banks and countries need to simultaneously consider the fluctuations of national currencies of different countries.
Collectively, BRICS countries encompass over 40% of the world’s population and account for roughly 26% of the world’s GDP, representing a substantial share of global trade.
Unlike commodity money like gold or silver, which have intrinsic value, fiat money has no inherent value. Its value is solely based on the trust and confidence that people have in the issuing government. If that trust wanes, the value of fiat currency can be at risk and individuals and everyday workers will continue to see the purchasing power of the dollar diminish over the years. It can impact the ability to save for the future and plan for retirement.
Banking giant UBS says demand for gold from central banks around the world is likely to surge this year as countries continue to back away from the US dollar in favor of local currency and alternative currencies that are not subject to foreign government sanctions and the weaponization. In a new report titled Three Reasons … Read moreUBS Issues Report on Central Bank Gold Buying
China’s central bank continues its buying spree that has so far spanning six months. In April, the bank added an additional 8.09 tons of gold to its reserves, now topping 2,076.47 tons.
The token’s initial offering is backed by 140 kilogram gold bars that have been allocated from central bank reserves
The offering from Zimbabwe is causing a ruckus with the IMF that is reminiscent of the outrage posited against El Salvador when it established bitcoin as a legal currency and began issuing bitcoin bonds.