Last week the nation of Dubai announced the creation of a blockchain based crypto-currency that would be backed by physical gold, and would be compliant with the new dictates of Sharia law finance. And this gold-backed crypto-currency idea was quickly followed by a plan between the Chicago Mercantile Exchange (CME) to do the same with physical gold backed by the UK Royal Mint.
Now a third company is seeking to get off the ground by creating a new gold-backed crypto through an Initial Coin Offering (ICO) on May 26.
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This is it... the governments are now starting to create their own cryptocurrencies.
Cryptocurrency backed by X seems like an oxymoron.
A gold backed cryptocurrency is ridiculous we need a gold pegged cryptocurrency.
what if they take the gold and run? Your tokens worthless. Not decentralized.
Are they backing it with real metal or with GLD-type paper gold?
The idea of cryptocurrency is that it doesn't need to be backed, it already should have value.
also I love how her opening sentence basically says, "BTC and fiat are the same...except they are totally different"
Supposedly real metal. Will be purchased with proceeds from the ICO next Friday.
I know they kept saying "physical gold" in the video. I just wasn't sure they are serious because people call GLD physical gold too sometimes.
Also would they issue multiple coins backed by the same piece of gold the way a n ounce of gold is covering multiple GLD units?
This is super interesting waters.
If you look at Dubai's Onegram, and the CME's new collaboration with the UK Royal Mint to backstop a gold cryptocurrency, it would not behoove any new business to use paper gold backing because there are coming online too many validated options.
The learning curve keeps going up for me, lol.