The Perth Mint, Australian gold refiner announced that it is developing its own cryptocurrency backed by physical precious metals to make it easier for consumers to buy gold.
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.
With a crypto-gold or a crypto-precious metals offering, what you will see is that gold is actually backing it. 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.
CEO, The Perth Mint
According to the company, the aim is to provide a transparent offering that would allow investors to buy and sell with confidence, knowing the products they were buying were completely traceable. The desire to trace gold from mine site to processing and end consumer fitted well with the blockchain principles, the company added.
A date for a launch of the blockchain-allied products had not been set, it is expected the next 12 to 18 months would result in significant movement in that direction, the company said.
Recently, we have reported that Swiss-based commodities fund Tiberius Group announced its plans to launch cryptocurrency the Tiberius coin, or tcoin, underpinned by physically deliverable metals including industrials such as aluminum and copper in July.