Quote from: HotRod4Life on January 24, 2018, 12:53:26 PM

Quote from: alyssa85 on January 24, 2018, 12:51:19 PM

http://www.abc.net.au/news/2018-01-24/cryptocurrency-backed-by-gold-being-developed-perth-mint/9352036

Quote

Australia's biggest gold refiner, the Perth Mint, is developing its own cryptocurrency backed by physical precious metals.

The ambitious plan, which is subject to a confidentiality agreement, will make it easier for consumers to buy gold.

Media player: "Space" to play, "M" to mute, "left" and "right" to seek.
Audio: Perth Mint chief executive Richard Hayes talks about plans to develop a crypto-gold product (ABC News)

The mint also plans to make use of blockchain technology, first used as the core component of the digital currency Bitcoin, where it works as a public ledger for transactions.

In the 10 years since its inception, blockchain has been used to track transactions in industries from agriculture to land registration and the music recording industry.

For the Perth Mint, the need to bring investors back to precious metals after a boom in alternative investments such as cryptocurrencies posed an opportunity, according to chief executive Richard Hayes.

"I think as the world moves through times of increasing uncertainty, you're seeing people look for alternate offerings," he said.

Over the past 18 months, the Perth Mint has introduced an online trading platform that allows consumers to purchase the precious metal at all times of the day and night.

The introduction of a crypto-gold product would increase the accessibility of gold by consumers.

"As far as Perth Mint is concerned, gold has certainly become far more accessible to the ordinary man in the street," Mr Hayes said.

"We certainly try to make it easier and easier, within reason, for people to access precious metals. This would just be another way for them to do it."

Mr Hayes said while a date for a launch of the blockchain-allied products had not been set, he expected the next 12 to 18 months would result in significant movement in that direction.

The bit about their own online trading platform is interesting. Presumably if their gold backed cryptocurrency is a success, they might add other cryotocurrencies to their platform too.

Why should cryptocurrency to be backed by anything like a metal?

wouldn't that give more confidence in it? gold is a tangible asset. Heck many FIAT's aren't backed by gold