The Zimbabwean government is considering adopting a central bank digital currency (CBDC). The Reserve Bank of Zimbabwe (RBZ) has been researching this for a while now. If you thought they were joking you might want to think again.
In the Mid-Term Monetary Policy Statement released on the 11th of August, the RBZ updated us on the progress that’s been made so far.
The RBZ has “conducted study tours to countries that are advanced in CBDC endeavours and has developed a roadmap for adoption of CBDC in Zimbabwe.”
They sound serious. So, you might want to familiarise yourself with what CBDCs are all about. They are not a trivial issue, they will affect you personally, whether you like it or not. More so than the gold coins that were introduced late last month.
The gold coins are having their impact on the economy but you’re probably not involved in all that. You won’t be able to check out of using CBDCs.
Read this to understand what CBDCs are: Zim govt looking at central bank digital currency, what is that and why won’t it fix our problems
Now that we all have an idea what CBDCs are, let us look at where the RBZ is in the process of introducing them.
Consultation paper
The RBZ has developed a consultation paper on CBDCs and will be releasing it soon. In Zimbabwe we are accustomed to world shattering announcements being made Nicodemously. Statutory Instruments usually come with no warning.
When it comes to CBDCs we are thankful that the whole process has been transparent. We know they are coming and now we are being given the opportunity to voice our thoughts on them. Let us not waste this opportunity.
I know the cynic in you is screaming, ‘this is a waste of time, it’s just for the show, they won’t actually consider what we have to say.’ The same voice is drowning my thoughts right now. However, what do we have to lose but time? Let’s take the RBZ at its word for once and participate.
Says the RBZ,
The consultation paper is aimed at fostering a broad and transparent public dialogue regarding the potential benefits and risks of CBDC. The public will have a period of 90 days from the date of release to submit their comments to the Bank.
Quote taken from mid-term monetary policy statement
We will do our part and make sure we help alert you when the consultation paper is released.
The consumer perception survey
That’s not all. The RBZ will also be carrying out a consumer perception survey on CBDC. What? Could this be the RBZ realising that without public buy-in, even okay measures will fail?
That voice again is screaming, ‘we let them know in no uncertain terms that we didn’t want the bond notes/gold coins/[insert other contentious govt innovation], and they ignored us.’ Ye of little faith. Have you not heard that the n-th time’s the charm.
It’s better to try and be ignored than to never try. As the kids say, you miss all the shots you don’t make. So let’s shoot our shot my fellow Zimbos. Participating in a survey should not be too difficult to do.
We shall make sure to tell you when the survey work starts.
The central bank says it will use findings from both the consultations and the survey to craft pilot programmes related to CBDC. If all goes to plan the people’s voice will help shape everything up.
There are those among us that understand the CBDC and blockchain world and we need you to step up.
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20 comments
Noo need for for that we have Zimbo Cash already which just needs a little bit of endorsement but rather lets wait and see they wanna repeat what they did to Kwese TV
Zimbo cash what have they done nothing who needs 5yrs to launch a project???????
If your English is as bad as your success,then we would be wasting our time listening to you.
A worthwhile innovation for the RBZ to consider would be finding a way to link the CBDC with gold
We already have a digital currency through the RTGS system, where the RBZ just injects money and updates their Excel sheet. 😂
I agree with you there. What would be the difference between a CBDC and the current RTGS. Other Gvts are turning to CBDC as a way to try and give an alternative platform to those who do not want to take on the decentralised and anonymous risks that come with cryptocurrency, and to catchup with the market.
A CBDC is an effort by central banks to control the decentralised nature of cryptocurrency by making the transactions traceable and issuance centralised. Our RTGS has had components similar to a CBDC except they are not based on a block chain. If RBZ has failed to manage inflation thru RTGS what would change if it is CBDC. Isn’t CBDC just another fancy name for the RTGS. Which market are they trying to capture thru RTGS. Who has been fueling the black market. The Gvt contractors paid in RTGS as admitted by the Gvt itself. Would that change if they are given CBDC, if you cannot use Zim CBDC for International trade?
CBDC can work but they should try to make it a stable coin based on reserves of gold.
May the RBZ explain this through all social media and even radio shows. According yo.me this is the first time to about the CBDC,and I don’t understand what is it, it’s advantages and the like.
End of thinking capacity for the RBZ
Pilot project is fine, but they must introduce a gold bank first, then prop up our currency against gold, our currency won’t fail if supported by gold, there has to be physical gold at the reserve bank to get a good rating from international agents like IMF and other rating agents. Remember the papers that are printed (fiate currency) work because there is consensus that it works, but in Zimbabwe at the moment there is defacto consensus that it doesn’t work, no confidence. Gold is capable of changing that percetion, when that happens, CBDC won’t be a problem, that will be a smooth transition. Responsible behavior is imparative from banking institutions, decision makers and the general public.
The above two last messages are 💯 correct.
It all comes down to trusting the reserve bank and government in power. Unfortunately we have a history of erratic ideas that only benefit a few. The release and sale of gold coins has only benefited a few. 1500 have been sold and no more in stock!!! Oh really! The Us$ is now more prevalent in Zim than rtgs taking us to the only currency that Zimbabweans trust.
Any currency that is not accepted outside Zim is of no value!! Be real Guys. All crypto currency’s can be reproduced at the push of a button. All crypto currency’s can be hacked or reproduced because they’re computer generated.
Our problem is that without a disciplined RBZ and disciplined government that prints money at a press of a button none of this will work as the US$ is now the only trusted currency in Zim and will be for the foreseeable future. If you don’t believe me go to Imbare and try shopping with rtgs, Ecocash, bank transfer, bond notes and you’ll be sent away!!
ZIMBOCASH TINAYO KARE
I found this informative, do u have a WhatsApp group/bot or telegram channel where u can share these & other articles.
A CBDC? In whose hands lol Zimbocash has the right vision and fundamentals that already has the trusts of hundreds of thousands.
F the RBZ!
Every Central Bank needs a CBDC. This is for accountability reasons. That might not solve our currency woes but it’s a necessary move in transparency space. Moving with times baby.
I have had a plan for ZIM since 2017.Shelfed that of course to work on another project.
The name wasis crypto-cash-gold(CCG) , a trustless currency and security issuance protocol for clearing debt and national development.
It was going to create over $60 billion for our economy within a year.
I think the problem is this bias that some supposedly vetted panel of experts at the central authority is substitute for the decentralized computational human resource of a nation.A free market for intelligence , undisputedly remains superior,that is why their economists are in ree like mad men.All they need to do is to offer incentives for solving the currency problem and there is no shame in admitting how irreducible a system of intelligent participants is.
I or we will submit proposals.
Sometime in February of this year the Digital Finance Practitioners Association of Zimbabwe DFPAZ and their Zambian Counterparts held a Webinar on central bank Digital Currencies interesting discussion it was and there are key learning points. The recording is found here https://www.facebook.com/587987694/videos/429565422199340/
With a multi currency system already at work, is there any need for another currency form? I think what we need for now is to work with what we cal ready have while working hard on fiscal discipline. Why if you want a bit of modification to the multi currency regime not consider the Chinese yuan which is now going international in bounds and leaps? Let’s also take advantage as China is seeking to promote its currency globally and all of that after Zimbabwe signed a currency swap deal with China in 2020.