Technology: Gold-Backed Cryptocurrency Aims To Tap Stablecoin Appeal - - PressFrom - US
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Technology Gold-Backed Cryptocurrency Aims To Tap Stablecoin Appeal

02:25  06 november  2019
02:25  06 november  2019 Source:   bloomberg.com

Cryptosphere Courts Gold Bugs as Bitcoin Loses Some Luster

  Cryptosphere Courts Gold Bugs as Bitcoin Loses Some Luster The cryptocurrency world is seeing a surge in the issuance of gold-backed tokens, with some of the digital-asset industry’s biggest and most controversial participants joining in on the fresh gold rush. The throng behind the Tether stablecoin and the Bitfinex trading platform plan to issue Tether Gold before Christmas. The token will be backed 100% by bullion reserves, according to Paolo Ardoino, who serves as chief technology officer for Bitfinex and Tether.

Justina Vasquez. 1:50. Gold - Backed Cryptocurrency Aims To Tap Stablecoin Appeal . By. Some investors draw parallels between cryptocurrencies and hard assets like gold that offer no yield, partly because low-yield environments can boost the appeal of both and given both are free from ties to a

GOLD token is a stablecoin backed by real gold bars stored in secure and auditable vault storage at BullionStar. Another claiming to be the world’s first gold - backed cryptocurrency , Doradocoin tokens are issued to attract investments into an existing gold production enterprise in Chile.

(Bloomberg) -- Bitcoin may be a distant alternative to safe havens, but CoinShares Group is betting that trading a digital gold asset linked to the token may provide investors with a sense of security.

The launch of the product, called DGLD, included $20 million of the digital metal tied to an offset of Bitcoin’s blockchain, with each token representing a 10th of a troy ounce. One ounce of gold for immediate delivery on Tuesday cost $1,483.61, or about a sixth the price of one Bitcoin. Bullion often serves investors as a hedge against instability.

a screenshot of a video game: Gold holds steady as Bitcoin swings wildly© Bloomberg Gold holds steady as Bitcoin swings wildly

“As the stable coin starts to become more popular, we’ve seen numerous attempts to create gold-backed coins,” Meltem Demirors, chief investment officer at CoinShares, which manages roughly $700 million of assets, said in an interview Monday. To capture some of that market share, the London-based company decided to “create a coin that could functionally act as a stable coin, but be backed by something physical, i.e. gold,” she said.

Facebook's Libra may look to multiple digital coins based on national currencies

  Facebook's Libra may look to multiple digital coins based on national currencies David Marcus, Facebook's blockchain boss, reportedly says the main goal is creating a more efficient payments system. Libra took a hit earlier this month as several of founding members of the Libra Association, the nonprofit overseeing the project, dropped out, including PayPal, eBay, Stripe, Visa and Mastercard. The departures come amid mounting criticism of the Libra project, which was unveiled in June and immediately met skepticism from politicians, regulators and nonprofits.The Libra Association declined to comment. Facebook didn't immediately respond to a request for comment.

Gold - backed cryptocurrency is a popular answer to the volatility seen in the crypto market. We present a comprehensive guide of gold-based The ultimate gold - backed cryptocurrency directory. A stablecoin is a cryptocurrency whose value is "pegged" to assets with stable value including fiat

Gold - Backed Cryptocurrency Aims To Tap Stablecoin Appeal . “The one thing that is holding back Uber shares is the enormous lockup expiration that starts [Wednesday], and it is tough to get a lot of these long-only investors into the game ahead of such a mass supply hitting the market,” Evercore

Read more: Sprott-Backed Blockchain Platform to Give Gold Digital Edge

Some investors draw parallels between cryptocurrencies and hard assets like gold that offer no yield, partly because low-yield environments can boost the appeal of both and given both are free from ties to a sovereign entity, raising their appeal as havens from macro uncertainty. CoinShares’ product will compete with more than a dozen gold-backed or linked cryptocurrencies.

Still, with U.S. monetary policy easing possibly on hold and as global bond yields pare declines this year, investors are eyeing a slow-growth bet for the metal. Meanwhile, Bitcoin payment volume growth has slowed to about 3% this year from 15% in 2018. And even highly-liquid stable coins such as Tether have drawn increased scrutiny.

The gold token is set to begin trading on Blockchain Luxembourg SA‘s and MKS SA’s platforms in several weeks following final regulatory approvals.

To contact the reporter on this story: Justina Vasquez in New York at jvasquez57@bloomberg.net

To contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Dave Liedtka

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

Libra Association in talks with EU regulators, executive tells Reuters .
Libra Association in talks with EU regulators, executive tells Reuters"There are discussions that are ongoing (with EU regulators)and we still have work to do with them and any other regulators in the world," Perez said in an interview during a blockchain conference in Geneva, where the association is based.

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