Zimbabwe Has Sold Millions Of Gold-Backed Crypto Despite Warning From The IMF

0
69
Zimbabwe

The Reserve Bank of Zimbabwe has reportedly sold around 14 billion Zimbabwean dollars’ worth of gold-backed digital tokens, despite strict warnings issued by the International Monetary Fund. On 12th May, the central bank in the country announced that it had received a sum total of 135 applications for a total sum of 14.07 billion Zimbabwean dollars in order to buy the cryptocurrency.

The official currency in the country has been trading officially at 362 Zimbabwean dollars to a single United States dollar- but it is much higher on the street- making the entire stash amount to $38.9 million. The crypto tokens, which were first introduced in April and backed by 139.57 kilograms of gold, were on sale from 8th May to 12th May. 

Zimbabwe Has Decided To Back Cryptocurrency Purchases Against IMF Warnings

The tokens from Zimbabwe were also sold at a very minimal price of $10 for individuals, and $5000 for other entities and corporations. The minimum vesting period for these tokens is 180 days, and they are capable of being held in e-gold cards or e-gold wallets.

The move is considered to be a part of an effort in order to stabilize the economy of the country, and the continued depreciation of the local currency against the ever-prominent greenback. A different round of digital token sales will also be up, and the bank has already requested the applications to be submitted in the current week, and to be settled by 18th May.

The country has been in a battle against currency inflation and volatility for over a decade now. In 2009, the country decided to adopt the USD as its currency after a period of hyperinflation that rendered the local currency completely worthless. The Zimbabwean dollar was then reintroduced in 2019, but the volatility was still present.