Perth Mint is developing a cryptocurrency that receives backing from precious metals. The plan allows consumers to buy gold much easier but is subject to a confidentiality agreement.
Like Bitcoin, Perth will make use of blockchain technology as it’s core component. The system will act as a public ledger for each transaction. Blockchain technology is used to track various industry transactions including the agriculture, music recording and land registration industries.
Richard Hayes, the CEO of Perth Mint says the company saw a need to lead investors back to precious metals after investments in cryptocurrencies and other alternative investments ruled the markets.
Perth believes their latest investment option will succeed because of its backing. Hayes added that most digital currencies have no backing like precious metals. They are generally transferred from person to person via the internet. He believes people are looking for alternate offerings and thinks the offering of crypto-gold will be exciting.
Perth Mint To Develop Cryptocurrency
The offering will distribute through the ledger system so it will settle quickly, will be easy to trade and backing from precious metals.
Investors can buy and sell confidently because the transactions will be traceable.
He said blockchain would provide a transparent offering that would allow investors to buy and sell with confidence. They will know that the products they were buying were easily accessible. Hayes further stated that the ledger system was nearly incorruptible.
Perth’s system will differ from other blockchain record-keeping offerings. Many of these systems lack the gold backing which makes investors rely solely on the blockchain technology.
The investment retains its intrinsic value since the blockchain’s security is in the precious metals. With Bitcoin and other cryptos, the investor relies on the perception that there is something behind their investment. With Perth Mint’s offering, there really will be.