The Reserve Bank of Zimbabwe has set prices for its gold-backed digital tokens, planning to sell them to investors starting May 8. Individual investors will be able to purchase the tokens at a minimum price of $10, while corporations and other entities will have a minimum price of $5,000.
According to a statement released on May 4, the gold-backed digital currency tokens will be sold in both U.S. dollars and local currency. The local currency price will carry a 20% margin above the willing-buyer willing-seller interbank mid-rate. Interested investors can participate in the offer from May 8, which will close two days later.
Digital Tokens to Support Local Currency
The introduction of digital tokens is Zimbabwe’s latest effort to support its local currency, which has weakened 37% against the U.S. dollar on the official market this year, according to Bloomberg. The Monetary Policy Committee approved the plan in March, after Zimbabwe introduced gold coins as a store of value to help support the local unit.
Zimbabwe has been grappling with currency instability and high inflation rates for over a decade. After a period of hyperinflation, the country adopted the U.S. dollar in 2009. However, in an attempt to revive the struggling economy, the Zimbabwean dollar was reintroduced in 2019. In 2022, the government reverted back to using the U.S. dollar to control rising prices.
Nigeria introduced its own digital currency, the eNaira, in 2021, becoming the first African nation to do so.
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