Zimbabwe plans instant payment system to promote gold-backed ZiG currency
Zimbabwe's Reserve Bank is negotiating with India's NPCI International Payments to implement a real-time payment system for the ZiG, a gold-backed currency launched in April 2024. This technology aims to make ZiG transactions faster, cheaper, and more accessible, but success depends on building public trust and maintaining institutional control.
Brève Publié le (Africa/Lagos, UTC+1)
Zimbabwe’s central bank is working with NPCI International Payments, the overseas arm of India’s instant payment system operator, to introduce a real-time payment system for the ZiG currency.
The ZiG, launched in April 2024, is a gold-backed local currency intended to circulate alongside the US dollar. The new payment system aims to reduce transaction costs, speed up transfers between bank and mobile money accounts, and enable direct payments from accounts for small purchases.
Experts emphasize that technology alone will not guarantee the ZiG’s success. For the currency to gain wider adoption, Zimbabwe must maintain control over the payment system, allow users freedom to choose between the ZiG and the dollar, and ensure credible monetary policy to build public trust.
This is crucial given Zimbabwe’s history of currency instability, which has undermined confidence in local money. The partnership with India’s NPCI International follows similar collaborations by countries like Namibia and Peru, but Zimbabwe faces the challenge of preventing external control over its payment infrastructure amid geopolitical risks.