Zimpapers Logo

Nqobile Bhebhe, Business Online Reporter

THE gold-backed digital tokens mopped out $14 billion from 135 bids received on first issue, the Reserve Bank of Zimbabwe said on Friday.

A total of 132 bids in local currency were received with three in United States dollars.

In a update after the issuance on Friday, the central bank said: “The Reserve Bank of Zimbabwe would like to notify the public of the results of the RBZ Gold-backed Digital Tokens issue No. 1/2023 held on Friday 12 May 2023.

“The Bank received 135 applications valued at ZWS14,077,337,421 to purchase gold-backed digital tokens.”

The central bank said applications under the second issue of the RBZ gold-backed digital tokens should be submitted through banks during the course of the week for settlement and issue on 18 May.

The gold-backed digital tokens just like the gold coins have a vesting period of 180 days and can be redeemed afterward based on the international gold price as determined by the London Bullion Market Association (LBMA) PM fix payable in either local or foreign currency.

The gold-backed digital tokens are meant to expand the value-preserving instruments already available to stabilise the economy. The gold-backed digital tokens follow the successful injection of Mosi-oa-Tunya gold coins in July last year, which started with higher-denominations and later followed up by smaller denominations in November due to high demand in the market.

The central bank said gold-backed digital tokens will have prescribed asset status and liquid asset status and be acceptable as collateral and tradable.

Settlement will be done in local or foreign currency.

The issuance will be in a two-phased approach. The tokens will be available for sale through banks in both foreign currency and Zimbabwe dollar.