The Reserve Bank of Zimbabwe (RBZ) successfully conducted its first sale of gold-backed digital assets worth 14 billion Zimbabwean dollars (~$39 million). The initiative aims to stabilize the country’s economy and improve public access to investment instruments.
The Reserve Bank of Zimbabwe conducted a successful sale of gold-backed crypto tokens. The RBZ sold 14.07 billion Zimbabwean dollars worth of digital assets over five days, from May 8 to 12. This was reported by the local media.
In total, the RBZ received 135 applications from individuals and companies. The minimum price was set at $10 for individuals and $5,000 for corporations and other organizations. Moreover, there was a minimum vesting period of 180 days for the tokens to ensure their stability and prevent short-term speculation. According to John Mangudya, Governor of the RBZ, the results of the first sale showed that investors had a significant interest in these kinds of digital assets.
The Reserve Bank of Zimbabwe announced plans to issue a digital currency backed by gold in April this year. Crypto tokens are backed by 139.57 kg of gold.
This step is part of the Reserve Bank of Zimbabwe’s strategy to stabilize the country’s economy, which is suffering from inflation and high volatility of the local currency. The Zimbabwean authorities accepted the U.S. dollar as the official currency in 2009 after a period of hyperinflation, but economic problems persisted. In 2019, the local currency, the Zimbabwean dollar, was reintroduced in an attempt to revive the economy, but high levels of depreciation undermined its credibility.
The RBZ expressed its determination to continue issuing digital assets backed by gold. The second round of token sales is scheduled for May 18, and the bank has already begun accepting applications for consideration.
It’s worth noting that representatives of the International Monetary Fund (IMF) criticized the intention of the Zimbabwean government to use gold-backed digital currency as a tool to solve macroeconomic problems, suggesting the need to conduct a risk assessment. Earlier, the Reserve Bank of Zimbabwe considered using CBDCs as well.
