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Zimbabwe Sells $14 Million in Gold-Backed Digital Tokens

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Zimbabwe 1 oz gold coin

The Zimbabwean economy is no stranger to hyper-inflation. In 2009, the country adopted the USD as an official alternative to their local currency which helped to stabilize prices for a while.

The economy in the landlocked nation in the southern zone of Africa is based on natural resources and the country’s largest export is gold. In a sense, the economy of Zimbabwe is like a canary in a coal mine and can give investors of a sense of the direction things are heading at home.

Inflation set in again in recent years and the country’s leaders are looking to step away from the USD in favor of gold. The initial launch of the country’s gold-backed digital currency The token’s initial offering is backed by 140 kilogram gold bars that have been allocated from central bank reserves.

The offering Zimbabwe caused a ruckus with some international lenders, with the IMF issuing a statement reminiscent of the outrage posited against El Salvador when it established bitcoin as a legal currency began issuing bitcoin bonds.

A major announcement about a gold-backed basket currency is expected from the BRICS conference in South Africa in August. The BRICS gold-backed currency will offer emerging nations greater opportunities to flourish without being dependent on the dollar currency for settling cross-border transactions.

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Texas Committee Passes Bill To Create 100% Gold And Silver-Backed Transactional Currencies

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Legislators in Texas are leading the charge against the Federal Reserve’s monopoly on fiat money by offering an option for people to conduct business in sound money. The principal idea reverses Gresham’s Law, where good money drives bad money out of circulation and the people can choose to decline to accept less valuable fiat money from the Fed.

The bill has the bipartisan support of 42 sponsors to create a viable gold-backed alternative to a central bank digital currency (CBDC) already in development by the Federal Reserve. 

If the bill becomes law, it would require the state comptroller to establish and provide for :

  • The issuance of gold and silver specie – A specie is a physical coin or token, typically made from a precious metal that is suitable for or customarily used as currency.
  • Require the comptroller to authorize the Texas Bullion Depository as issuer of the specie as legal tender in payment of debt and readily transfer the specie to another person
  • A mechanism to use 100% backed gold and silver digital currencies in everyday transactions
    • Use the digital currency as legal tender in payment of debt.
    • By electronic means readily transfer or assign the digital currency to another person.

Physical gold and silver backing the digital currency would be stored in a pooled account at the Texas State Bullion Depository.

Federal lawmakers from Texas are also leading the charge against the Federal Reserve issuing a consumer CBDC. In March, Senator Ted Cruz introduced legislation specifically aimed at preventing the Fed from establishing a central bank digital currency.