A few weeks ago, we reported on the then-impending agreement between Apollo Fintech and the government on what we were hearing would be a gold-backed digital currency.
Since publishing that story we’ve stayed in touch with Apollo Fintech patiently waiting for any update they had on that front and they’ve finally shared a bit more information.
The fintech said they’ve reached an agreement with CBZ Capital (part of CBZ group) to develop three new products “for the betterment and modernization of the bank”.
The products will be as follows;
- A national payment platform
- A commodity exchange
- An R.T.G.S Value Storage Coin
National payment platform
In our discussions with Apollo Fintech, they described the national payment platform they’re working on as a rival to EcoCash. In their view, EcoCash is essentially a token backed by the RTGS (which is only recognised in Zim). Apollo Fintech reps I spoke to described their token as being gold-backed which they believe will cause it to have more value than EcoCash locally as well as allowing for cross border payments.
Commodity exchange
The commodity exchange will cater to those looking for alternative investment options with a choice to invest in commodities such as gold. More details on this will follow at a later date.
An RTGS value storage coin
From our brief discussion with Apollo Fintech, the thinking behind the storage token is that those interested will be able to submit their RTGS for a US$ value (based on exchange rates) and lock-it in for 12 months. Apollo Fintech’s representative explained that the CBZ partnership will ensure there are bank guarantees that will protect people/businesses locking in their money
Cryptos, trust and a full picture…
At this point in time, it’s impossible to have a verdict on what Apollo Fintech is offering because we just don’t have a full picture of how these services will work.
Locally, there isn’t much in the way of trust when it comes to cryptocurrencies after what happened with Golix and that will probably be Apollo’s biggest challenge – shifting the perspective locals have when it comes to cryptocurrencies.
Apollo Fintech did promise to send us more documentation regarding how these services will work and from those, it will be easier to make a value judgement with full understanding of the services they are offering.
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6 comments
Just like anything else gold/USD backed, the issue is with the actual backing being in existence. Where is this gold coming from and who is guaranteeing it’s security? Much like the famed USD backing of bond notes, which vanished without a single explanation.
As well, the treacherous economic legislation could see coin subscribers losing value to another poorly thought it statutory instrument. Of which, you can be guaranteed, CBZ won’t be the one to take the losses.
I can’t disagree with anything you said the. The approach for us with this kind of information is to continue analysing what we get but even then there’s one thing you can never analyse; the volatility of Mthuli and Mangudya.
Even if these are good services when effected, all that is one signature away from being undone and when you then take into consideration all the other complexities of block chain solutions – it makes it hard to be confident
Apollo Fintech has, in its ecosystem, a reputable stable coin called Paxos. Paxos is itself is a solid broker for gold. I don’t know everything about the situation, but I would imagine that the gold backing that we hear about in Zimbabwe will work along those lines in some fashion.
Aree you with apollo? Can we talk about where you guys are right now?
Someone outlined something about gold coins.
I personally think it’s a great idea, for instance putting the amount of gold which is equivalent to one USD in our dollar note or coin.
USD is back by what??? how do currency made paper get there value