Australia’s Perth Mint Vault And InfiniGold Develop Gold-Backed Token For Blockchain Trading
Australia, the second largest gold producer in the world is set to use Blockchain technology to enable consumers buy and sell gold through the newly introduced Perth Mint Gold Token (PMGT).
Australia’s Perth Mint which now stands at 120 years old is one of the largest if not the largest gold refineries in the world. After getting authorization from the government of Western Australia, it recently teamed up with InfiniGold to roll out a digital token (PMGT) that allows gold trade on an online platform. InfiniGold allows investors to buy, sell and hold physical gold at the mint. The aim of the project is to make gold easily accessible to as many people as it can reach out to.
This new project comes with a number of benefits to the customers. Among them is that transactions are done without need of physical presence as all is transacted from the convenience of your smartphone. This in itself saves a lot of time. This also gives customers a sense of security knowing that their gold is safely held online in the Central Bank’s vaults rather than having physical gold in your house or backyard.
Gold Still Stands at the Top of the Pecking Order
The Chief market strategist at CMC markets Michael McCarthy recently pointed out that at the moment, demand for gold is quickly scaling up. He adds on that since August when gold prices hiked above $US1500 in the wake of global trade wars, Australian-dollar prices have since posted record highs. This means that the new online gold trading system has been rolled out just at the perfect time when this demand is at its peak.
Australia’s Perth Mint is backing PMGT as an alternative for other US Dollar backed stablecoins like Bitcoin which haven’t proved so successful in recent times. PMGT has an edge over other cryptocurrencies in that its tied to a physical asset, this gives confidence to the consumers knowing that its backed 1:1 by the gold.
Not everyone, however, is fully satisfied with the new system, Steve Sammartino criticizes the new system arguing that the moment you use a real asset to back a cryptocurrency, it diminishes the value of the cryptocurrency in turn. He thinks of the whole idea behind it as a branding element. Michael McCarthy, on the other hand, thinks that the system’s all round convenience could be the major factor attracting its popularity.