Gold-Backed Cryptocurrency in Development in Australia

The Australian Broadcasting Corporation released reports of Perth Mint’s intention to venture into cryptocurrency development. Richard Hayes, the chief executive officer at Perth Mint, Australia’s largest gold refiner. Richard recently revealed that Perth Mint is in the process of venturing into crypto development in a move to provide additional lucrative investment opportunities. Hayes said that the move to develop a gold-backed cryptocurrency is aiming at attracting investors back to precious metals.

Australian Gold Refinery to Develop Gold-backed Cryptocurrency

During a press briefing, Hayes admitted that cryptocurrency-based payments using blockchain technology are becoming an efficient and reliable way for settling payments. With this in mind, Perth Mint intends to develop a cryptocurrency backed with gold to address the high price volatility associated with conventional cryptocurrencies. According to Perth Mint’s CEO, the gold-backed crypto the firm intends to develop will offer its users with a stable digital currency that has intrinsic value.

A gold-backed cryptocurrency means that the value of the crypto is reliant on the current value of gold. Perth Mint CEO asserts that there are numerous benefits of using metal-backed cryptos. Other than being able to use the digital currency across any blockchain network, settling the gold-backed crypto on a distributed ledger is inherently easy since it is backed by something.

Commodity-Backed Cryptocurrencies Are Flourishing

Perth Mint is the latest firm to show interest in developing gold-backed cryptocurrency. If successful, Perth Mint’s altcoin will join the growing list of asset-backed digital currencies. Onegram is a shariah-compliant cryptocurrency that is gold-backed. Last year, the crypto earned mainstream coverage when carrying out its initial coin offering. Onegram was hoping to raise $500 million in token sales, but this did not happen.

Recently released data show that Onegram raised 0.14% of the $500 million during its ICO. Onegram is still undergoing development. Investors who bought the crypto’s tokens can sell them for a 25% profit if they wish to liquidate their stake. Venezuela is also planning to release a commodity backed cryptocurrency that will go by the name Petro. The Venezuelan Petro gets is backing from barrels of oil.

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