RBZ Gold-backed Digital Tokens – Pricing, application, redemption and more…
The RBZ Gold-backed Digital Tokens are being issued to expand the value-preserving instruments available in the economy, enhance the 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.
Pricing
The pricing of the Digital Tokens in foreign currency shall remain the same as the pricing model of the physical gold coins as informed or guided by the international gold price as determined by the London Bullion Market Association (LBMA) PM fix. Payment for the digital tokens or physical gold coins in local currency shall be at a 20% margin above the willing-buyer willing-seller interbank mid-rate.
APPLICATIONS
Applications will be through banks, building societies and the POSB. Applications must be for a minimum of US$10 and US$5,000 for individuals and corporates and other entities (including financial institutions), respectively. The Reserve Bank reserves the right to accept or reject any application or part thereof.
The full payment for allotted digital tokens shall be made on the settlement date through the normal payment systems.
Application for this issue must be on the form provided with this prospectus and should be addressed to the Director, Financial Markets, 80 Samora Machel Avenue, Harare and forwarded to the following email address: [email protected].
SOURCE OF FUNDS
Investors cannot use borrowings to finance the purchase of tokenized gold coins. The Financial Intelligence Unit shall take appropriate action in respect of any suspicious sources of funding. Financial institutions are required to exercise Know Your Customer (KYC) principles.
ISSUANCE
The digital tokens will be issued in milligrams, which is one-thousandth of a gram, through custodian banks within the Central Securities Depository (CSD) payment system.
REGISTRATION
Transfer of the digital tokens will be done through the custodial banks which will split allotments to its various customers’ accounts.
REDEMPTION
The digital tokens can be redeemed after the vesting period of 180 days, based on the international gold price as determined by the London Bullion Market Association (LBMA) PM fix, payable in either local or foreign currency as is the case with physical gold coins. Payments will be done through the nominated custodial banks.