New Ethereum Token Backed By Australian Government Gold Reserves
Perth Mint in Australia, one of the largest gold refineries in the world, is launching a gold-backed Ethereum token which is guaranteed by the government of Western Australia.
Moreover, marketing materials shared with Hard Fork claims Perth Mint Gold Token (PMGT) to be; the first gold token on a public Blockchain backed and guaranteed by National reserves.
“It offers institutional investors a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology,” reads a press release.
In addition, Perth Mint CEO, Richard Hayes praised the move to digitize gold using Blockchain technology as; “a natural progression for the global commodity markets.” He said:
“It will promote gold as a mainstream asset, enhance its accessibility; and offer greater liquidity, transparency and auditability of the real assets backing this type of digital token.”
Gold goes Digital
At the moment, China is the world’s leading gold producer with an output of 400 tonnes per year. However, Australia is not far behind with Western Australia producing approximately 310 tonnes per annum. Perth Mint distributes about $18 billion in pure gold; silver and platinum bars and coins to investors to more than 100 countries.
Moreover, the move to create a digital gold token has been long anticipated. The Perth Mint has gradually introduced digital alternatives to traditional gold. This includes its Goldpass digital certificates. The mint has been issuing them since October 2018. Additionally, the entity has been voicing its intention of extending into a fully-fledged cryptocurrencies for over two years.
In fact, the PMGT provides an excellent alternative to USD-backed Stablecoin. These USD-backed coins have attracted inflows of around US$2.3 billion (A$3.4 billion) so far in 2019. They generate average daily trading volumes in excess of US$15 billion (A$22.15 billion).
PMGT issuer, InfiniGold claims the tokens will offer owners “superior transparency; credit quality, risk diversification and hedging against market volatility.” This is because they are tied to physical gold which is stable and considered a future proof store of value.
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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