Zimbabwe Issues Digital Gold Tokens for Investors
The Reserve Bank of Zimbabwe (RBZ) invites applications from Individuals, Financial Institutions, Corporates and Other Entities to subscribe for the issuance of RBZ Gold- Backed Digital Tokens No.1/2023. Applications for the RBZ Gold-Backed Digital Tokens must be for a minimum of US$10 for individuals and US$5,000 for financial institutions, corporates and other entities. Application forms are available from RBZ, Commercial Banks, Building Societies and the People’s Own Savings Bank (POSB).
Purpose of Issue of Zimbabwe’s Digital Tokens
The RBZ Gold-backed Digital Tokens are being issued to expand the value-preserving instruments available in the economy, enhance divisibility of the investment instruments and widen their access and usage by the public. 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. The digital tokens will be available for sale, through banks, in both foreign and local currency. Banks will create dedicated or specific accounts for the holding of the gold-backed digital tokens (e-gold wallets or e-gold cards). Holders of physical gold coins, at their discretion, will be able to exchange or convert, through the banking system, the physical gold coins into gold-backed digital tokens.
The digital 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 settlement. It therefore means that the gold-backed digital tokens would be used both as a means of payment and a store of value.
Features of Zimbabwe’s Gold-Backed Digital Tokens:
- Issuer: Reserve Bank of Zimbabwe
- Vesting Period: 180 days
- Purpose of Issue: To provide investors with a platform to save, invest and transact in gold
- Offer Opens: Monday, 8 May 2023 at 0800 hours
- Offer Closes: Wednesday, 10 May 2023 at 1 200 hours
- Payment: Thursday, 11 May 2023
- Issuance Date: Friday, 12 May 2023
- Prescribed Asset Status & Liquid Asset Status
- Acceptable as collateral and tradable
- Bearer instrument
- Settlement will be done in local or foreign currency.
How to Apply for Zimbabwe’s Digital Tokens
Completed Application Forms should be submitted through Commercial Banks, Building Societies and the POSB. The application form and prospectus for the RBZ Gold-backed digital tokens are attached to this issuance note.