Exploring the Landscape of Cryptocurrency in Zimbabwe: Insights on Gold-Backed Tokens
In Brief
The pioneering sale of a gold-backed cryptocurrency in Zimbabwe turned out to be a remarkable success.
According to a recent announcement, the Reserve Bank of Zimbabwe successfully conducted its inaugural sale of cryptocurrency backed by gold. shared on May 12.
The Reserve Bank of Zimbabwe has rolled out a staggering 14 billion Zimbabwean dollars worth of gold-backed digital assets, valued around $39 million, despite the International Monetary Fund's cautionary advice.
The central banking authority disclosed that it received 135 requests totaling 14.07 billion Zimbabwean dollars for gold-backed cryptocurrency purchases. The current official conversion rate pegged at 362 Zimbabwean dollars to one U.S. dollar, reflects its street market value of about $38.9 million. The transaction period spanned from May 8 to May 12, during which a total of 139.57 kilograms of gold was allocated to back these crypto tokens. Previously, the central bank announced the launch of this sale last week.
Both individuals and companies have a six-month window to acquire tokens at a price point of $10. Users can utilize egold wallets or similar platforms. cards may be used to hold the tokens.
About local currency
The local currency's persistent decline compared to the U.S. dollar has raised concerns. In a bid to stabilize the economy and prevent further depreciation, there are reports suggesting a shift from the local currency to the Japanese yen. The bank is currently soliciting applications for this transition. digital token settlements to be completed by May 18.
A decade ago, Zimbabwe moved away from its own currency, opting for the U.S. dollar following an era of overwhelming hyperinflation that rendered the local currency valueless. Although the Zimbabwean dollar was reintroduced in 2019, the economic difficulties persisted.
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