RBZ Explores Introduction of Central Bank Digital Currency

The Reserve Bank of Zimbabwe is exploring the possibility of introducing a Central Bank Digital Currency (CBDC) in the country. The bank is calling out all consumers to participate in the Central Bank Digital Currency survey to solicit opinions on the design and nature of the CBDC and its overall acceptance by the public.

A Central Bank Digital Currency is a digital representation of a national currency issued by the central bank for use by the general public. According to the RBZ  ” The CBDC will be a complement to existing payment options in the country such as cash, mobile money, and bank cards,”

So basically what it means is the CBDC is not a financial asset in itself but a digital form of a national currency and draws its value from the physical currency, to which it is pegged at parity. It is also neither backed by a physical commodity like gold or silver.

Technically,Zimbabwe won’t be introducing a new currency rather the digital form of the RTGS, what’s not really clear is how it will be any different to the RTGS itself which is already in digital form.

The survey can be taken online and accessed on this link.