Business Markets News Report
May 15, 2023

The Future of Cryptocurrency in Zimbabwe: A Look at the Gold-Backed Tokens

In Brief

The first successful sale of a goldbacked cryptocurrency in Zimbabwe was a success.

The Reserve Bank of Zimbabwe’s first gold-backed cryptocurrency sale has been a success, to the central bank of Zimbabwe shared on May 12.

The Zimbabwean Reserve Bank has issued 14 billion Zimbabwean dollars’ worth of gold-backed digital tokens – worth $39 million – despite a warning from the International Monetary Fund.

Hyperinflation Leads Zimbabwe to Issue Gold Coins As Currency Sinks

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 official exchange rate for the Zimbabwean dollar is 362 Zimbabwean dollars to one U.S. dollar, according to XE.com. On the street, however, the stash is worth around $38.9 million, making it nominally worth $38.9 million. The sale took place from May 8 to May 12, and overall,139.57 kilograms of gold are used for backing the crypto tokens. The Reserve Bank of Zimbabwe announced the gold-backed digital currencies sale last week.

Individuals, corporations and other entities have 180 days to buy tokens at $10. Egold wallets or egold cards may be used to hold the tokens.

About local currency

The local currency has continued to decline against the U.S. currency. In order to stabilize the economy and stop the currency from further declining, the move reportedly is part of an effort to switch local currencies to the Japanese yen. The bank has asked for applications to be submitted this week for digital token settlements to be completed by May 18.

A decade ago, Zimbabwe abandoned its local currency and adopted the US dollar as currency following a period of hyperinflation. The local currency had become worthless. While the Zimbabwe dollar was reintroduced in 2019, the economy struggled again.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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