Although originally announced in April, the “GBDT” is intended to stabilize the Zimbabwean dollars. It was also intended as a way to protect Zimbabweans from inflation, which it is remained persistently high for years.
Presenting the monetary policy statement on Wednesday (August 9), RBZ Governor John Mangudya revealed that up to July 21, the Bank had conducted 11 issues of GBDT. He noted that the bank received 590 requests to purchase tokens that are equivalent to 325.02 kg of gold. As an instrument of monetary policy, the increasing importance of gold in supporting the financial system Zimbabwe dates back to a time when central banks adhered to the gold standard.
Moreover, the country’s foray into digital gold echoes the growing interest in the concept among to critics of fiat currencies. For example, the arguments in favor of GBDT in the USA are increasing intertwined with arguments against CBDC. And both rest on the general suspicion that they allowed that too much power to be concentrated in the Federal Reserve.
It’s no coincidence that Republican lawmakers spearheaded the ban effort of a CBDC in Florida and an attempt to start a GBDT in Texas. After all, the GOP is last became increasingly critical of the Fed in all its different wings.
Ultimately, both anti-CBDC policies and digital gold initiatives confirm the economic autonomy of states. As such, they attract defederalization advocates who oppose what they consider excessively centralized fiscal administration.