“I think as the world moves through times of increasing uncertainty, you’re seeing people look for alternate offerings”…
Yesterday we highlighted the news that the LBMA is looking to use the blockchain to track metals products.
We noted that this could be a blessing or a curse, depending on how it is implemented.
Today we look at something much closer to the heart: A precious metals-backed cryptocurrency being developed by the Perth Mint.
This is part of the fusion of metal with the blockchain that so many analysts, such as Rob Kirby, have been discussing.
Here’s more about the Perth Mint’s plans from Tara de Landgrafft via abc.net.au:
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.
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.
But Mr Hayes said the volatility of some of the current cryptocurrencies meant they did not suit all investors.
And that is where a gold-backed offering may fit.
“With a crypto-gold or a crypto-precious metals offering, what you will see is that gold is actually backing it,” Mr Hayes said.
“So it will have all the benefits of something that is on a distributed ledger that settles very, very quickly, that is easy to trade, but is actually backed by precious metals, so there is actually something behind it, something backing it.”
You can listen to Perth Mind Chief Executive Richard Hayes talking about plans to develop a crypto-gold product here:
What is interesting is that the Perth Mint is looking to make gold more accessible.
But, as an added bonus, since Bitcoin and the other cryptos have gone mainstream, many people know how to transact and use digital cryptocurrencies.
Here’s more from Tara:
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.