Zimbabwe Establishes Price of Gold-Backed Digital Currency at $10 for Individuals

• Organizations and companies will incur a minimum fee of $5,000 per token.
• The offering will be available to investors from May 8 and will conclude two days later.

The government of Zimbabwe has determined a price for its gold-backed digital tokens. Beginning on May 8, the country will start providing its own digital currency supported by gold to investors. Individuals will be able to purchase tokens for a minimum of $10, while companies and other entities will be charged at least $5,000.

On May 4, the Reserve Bank of Zimbabwe announced that both dollars and the local currency would be accepted for acquiring the gold-backed digital currency tokens. A 20% margin above the interbank mid-rate will be applied to the pricing in local currency.

Aiming to Revitalize the Economy

The offering will be available to investors starting May 8 and will end two days later. The interbank market rate, which reflects the price at which most banks are willing to buy or sell currency to each other, is referred to as the “mid-rate.” This rate is influenced by market dynamics, such as supply and demand, providing a “midpoint” price between buying and selling rates.

This rate is recognized as a benchmark in the financial sector and is frequently used as a reference for quoted exchange rates by banks and other financial institutions. On April 28, the Reserve Bank of Zimbabwe announced its plan to issue a gold-backed digital currency as legal tender in the country.

The southern African nation has launched digital tokens as its latest effort to support its own currency, which has depreciated by 37% against the U.S. dollar in the official market this year, according to Bloomberg.

This initiative follows the introduction of gold coins eight months ago as a means to enhance the value of the local currency. The Monetary Policy Committee of Zimbabwe endorsed this concept in March.