The Reserve Bank of Zimbabwe (RBZ) has sold gold-backed crypto tokens worth 14 billion Zimbabwean dollars, or $39 million, despite a warning from the International Monetary Fund (IMF) which argues that the African nation should instead liberalize its foreign-exchange market.

Zimbabwe’s central bank announced on May 12 that it received 135 applications for a total of 14.07 billion Zimbabwean dollars to purchase the gold-backed cryptocurrency. The digital tokens are backed by 139.57 kilograms of gold, and it was first introduced in April.

The tokens were sold at a minimum price-tag of $10 for individuals and $5,000 for corporations and other entities, while the minimum vesting period for the tokens is 180 days and they can be kept safe in e-gold wallets or on e-gold cards.

Reportedly, the initiative aims at tackling the African nation’s dwindling economy and to revitalize it from the adverse effects of continuous depreciation against the dollar greenback. Speaking to a local media outlet, RBZ Governor Dr. John Mangudya had this to say:

“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.”

Sources:

https://cointelegraph.com/news/zimbabwe-sells-gold-backed-crypto-tokens

https://www.bitdegree.org/crypto/news/zimbabwe-ignores-imf-warning-and-sells-its-gold-backed-tokens

https://www.bloomberg.com/news/articles/2023-05-12/zimbabwe-backs-new-digital-money-with-140-kilograms-of-gold#xj4y7vzkg

https://www.bloomberg.com/news/articles/2023-05-09/imf-cautions-zimbabwe-against-plan-for-gold-backed-digital-money

https://www.herald.co.zw/14bn-gold-digital-tokens-bought-so-far-rbz/