Investors will have two days to participate in RBZ's offer.
Zimbabwe is launching gold-backed digital tokens on May 8th, with pricing set at $10 for individuals and $5,000 for institutional entities.
On May 4th, the Reserve Bank of Zimbabwe (RBZ) released a statement outlining the pricing details for its upcoming gold-backed digital currency tokens.
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The tokens will be available for purchase in both US dollars and local currency, with the Zimbabwe Dollar carrying a 20% margin above the willing-buyer willing-seller interbank mid-rate.
It is worth noting that the offer will be available for two days, until May 10th.
The willing-buyer willing-seller interbank mid-rate serves as the midpoint between buying and selling rates, reflecting the rate at which banks are willing to buy and sell currencies amongst themselves. This rate, influenced by market factors such as supply and demand, is commonly used as a benchmark for financial transactions and a reference rate for exchange rates taken by banks and financial institutions.
RBZ's plans to launch a gold-backed digital currency as legal tender in Zimbabwe were first announced on April 28th.
According to Bloomberg, the move to introduce golf-backed digital assets is part of the country's efforts to support its local currency, which has reportedly weakened by 37% compared to the USD.
The monetary policy committee approved the plan in March, following Zimbabwe's introduction of gold coins as a store of value eight months prior, aimed at bolstering the local unit.
It is worth remembering that Nigeria made history in 2021 by becoming the first African nation to introduce its own digital currency. Recently, Nigeria's CBDC experienced rapid adoption amid a fiat currency crisis.
Zimbabwe's move to launch gold-backed digital tokens is a significant step in bolstering its local currency and follows in the footsteps of Nigeria's digital currency introduction.
