Zimbabwe Introduces a Gold-Backed Cryptocurrency

The Reserve Bank of Zimbabwe plans to launch a round of digital token sales.

Zimbabwe Introduces a Gold-Backed Cryptocurrency

On April 28, the Reserve Bank of Zimbabwe (RBZ) introduced a digital currency backed by 139.57 kilograms of gold. The Central bank aims to use it as fiat currency for transactions in the country to stabilize the local currency.

According to the official statement, the token sale will be conducted at a minimum price of $10 for individuals and $5,000 for companies and other entities. The tokens can be stored in e-gold wallets or on e-gold cards for a minimum vesting period of 180 days.

The sale of digital tokens will represent the first step towards the central bank using the country’s gold reserves to anchor the Zimbabwe dollar. The RBZ Governor Dr John Magudya said about the matter:

“The issuance of the gold-backed digital tokens is meant to expand the value-preserving instruments available in the economy and enhance divisibility of the investment instruments and widen their access and usage by the public.”

However, the International Monetary Fund warned the African nation about this step and advised the country against it. An IMF spokesperson said the scheme should be carefully evaluated and its benefits and potential risks properly measured.

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