Zimbabwe sells millions of gold-backed crypto tokens despite IMF warning
May 14. 2023
By Martin Young
The Reserve Bank of Zimbabwe’s first gold-backed cryptocurrency sale has been a success.
The Reserve Bank of Zimbabwe has sold 14 billion Zimbabwean dollars’ worth of gold-backed digital tokens — worth around $39 million — despite a warning from the International Monetary Fund.
On May 12, the central bank of Zimbabwe announced that it had received 135 applications for a total of 14.07 billion Zimbabwean dollars to buy the gold-backed cryptocurrency.
The Zimbabwean dollar is officially trading at 362 Zimbabwean dollars to one United States, according to XE.com — but much higher on the street — making the stash nominally worth around $38.9 million.
The crypto tokens, first introduced in April, are backed by 139.57 kilograms of gold, with the sale running from May 8 to May 12.
Results of gold-backed digital currency sale. Source: Reserve Bank of Zimbabwe
The tokens were sold at a minimum price of $10 for individuals and $5,000 for corporations and other entities. The minimum vesting period for the tokens is 180 days, and they can be held in e-gold wallets or on e-gold cards.
The move is reportedly part of an effort to stabilize the country’s economy and the continued depreciation of the local currency against the greenback.
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