Perth Mint, a major gold refiner in Australia plans to launch its own cryptocurrency. And this coin will be backed by gold, unlike other coins. This move is in a bid to lure customers back to traditional investment methods like Gold.
Perth Mint is Australia’s biggest gold refiner, with a capacity to process over 700 tons of gold per year. The company is in the process of developing a yet-untitled cryptocurrency backed by gold. This coin would also be used for buying and selling crypto-gold on a blockchain.
Reason behind this decision
The recent trend of investors investing in new alternative investments has disturbed traditional investment firms. In order to attract investors again in gold, they have come up with their own cryptocurrency (ironically). Richard Hayes, the chief executive stated a “massive flow of funds into the likes of Bitcoin” as investors veer away from traditional safe-haven assets. Further, he added, A gold-backed cryptocurrency traded on a blockchain, has its own merits.
In conclusion, Perth Mint sees the offering as yet another platform for selling gold. In the next 12 to 18 months the executive expects to offer gold-backed tokens.