NEW: Gold-backed digital tokens out on May 8

Online Reporter

THE Reserve Bank of Zimbabwe (RBZ) will start issuing gold-backed digital tokens on May 8.

This follows the resolution of the Monetary Policy Committee (MPC) to complement the issuance of physical gold coins with digital products.

In a statement on Friday, RBZ Governor Dr John Mangudya said the pricing of the tokens in foreign currency shall remain the same as the pricing model of the physical gold coins.

However, the digital tokens will come in smaller denominations.

“As previously advised, the issuance of the gold-backed digital tokens is meant to expand the value-preserving instruments available in the economy and enhance divisibility of the investment instruments and widen their access and usage by the public,” he said.

The issuance and usage of the gold-backed digital tokens will be in two phases.

Under phase one, the digital tokens will be issued for investment purposes, with a vesting period of 180 days and redeemable in the same way as the existing physical gold coins.

Under phase two, the tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating person-to-person (P2P) and person-to-business (P2B) transactions and settlements.