There is a boom of crypto currencies based on physical assets and commodities. The digital currency based on ethical and traceable gold arrives in Europe. Symptomatic of a “second wave” and an eternal attraction for the yellow metal.
Crypto currencies and crypto Gold
The main criticism addressed to crypto currencies? Their value would not be based on anything. Indeed, it’s an argument that crumbles from the moment they are precisely backed by something tangible. This is the case of crypto currencies based on a physical asset, such as precious metals. One of them comes from elsewhere in Switzerland, under the name of G-Coin, and is based on gold.
The latter is developed by the American company Emergent Technology Holdings. According to its website, the tech-company has many offices around the world and has developed several activities. Such as payment systems for emerging and growing countries and also a tracking system of the Gold based on the blockchain technology. An experiment that gave the idea of launching a crypto currency based on gold. A durable and traceable Gold in this case, seems like “from the mine to the safe” as we could say.
The headquarters of the company are located in California. While the Swiss subsidiary is based in Geneva. Two managers of the Geneva branch, Andrew Parsons and Daniel Chavez, are also in the management of Emergent Technology Holdings. The subsidiary is intended for the marketing and distribution of these G-Coins tokens. The date of official launch is still unknown.
Crypto currencies based on gold will multiply
Elsewhere in the world, projects are multiplying. A few months ago, Forbes explained how crypto currencies project emerged in GCC. As for example, the Financial services company OneGramand and also Shariah-Compliant, that wish to follow the principles of Islamic finance. For now, it does not seem to have met the expected success. Earlier this year, Perth Mint, Australia’s largest gold refinery, announced plans to create a crypto currency based on physical gold this year.
The goldscape site has identified many projects in this cryptocurrencies area. Above all, with names all more similar to each other: Golden Currency in Singapore, GoldVein and GoldMineCoin in Russia, KaratGold in Germany, Sudan Gold Coin in Dubai… Even if nothing says that they all will see the completion of their project.
Basing the currency on gold, an old fad
Creating a currency based on gold is a fad that has been coming back regularly since the convertibility of the dollar with gold was abandoned in 1971.
One can quote the E-Gold, created from the beginnings of the Internet, in 1995. It proposed a digital currency convertible in gold. In 2000, E-Gold had reached 1 million transactions and the company running it had around 20 employees. Others arrived in the early 2000s, such as e-Bullion, BitGold, GoldMoney or OSGold. If you think that today crypto currencies are little regulated, needless to say, this era was a real Crypto Wild West.
The goals of the crypto currencies can appear somehow utopian, liberal or libertarian, or just and simply lucrative. Certainly among the founders of these sites of crypto currencies based on gold, some are malicious. Using them to launder money of stolen credit cards or to make discreet international transfers, not to say illegal. US and other authorities are investigating in order to shut down the ones who lack a viable business model or scams.
The “new wave” of crypto currencies based on gold, will remain to be seen if they will learn from the past.
And we are here to inform you on the best performed and controlled platforms