The West-Australian government owned mint will back the cryptocurrency with gold
Perth Mint, Australia’s largest gold refiner, has announced plans for the development a cryptocurrency backed by physical gold. If successful in developing the altcoin, it will join a long list of virtual currencies seeking to entice cryptocurrency investors to experiment with commodity-backed virtual currencies, including Venezuela’s soon to be launched ‘petro’.
Richard Hayes, CEO of Perth Mint, sees this as an opportunity to bring investors back to the traditional market.
The Perth Mint is one of the most important facilities across Australia’s mining industry, processing the majority of gold from Western Australia’s mines. It now wants to use that gold to back its own cryptocurrency.
Annually, the Perth Mint exports around $18 billion worth of gold, silver and platinum at a wholesale level. However, it wants to create a cryptocurrency for easier access for consumers to purchase gold and other precious metals.
Making gold more accessible
Over the past 18 months, the Perth Mint has introduced an online trading platform that allows consumers to purchase the precious metal at all times of the day and night.
As well as making it easier to invest into gold and precious metals, the Perth Mint says that blockchain-based cryptocurrencies would make it more transparent and secure to purchase gold.
Through the tech, consumers will be able to see real-time market visibility for trading prices, something that isn’t readily available for gold buyers now.
The Mint is targeting investors who are interested in exploring the cryptocurrency space, but may be scared away by the currency volatility of the space – appealing to them with the stability of a gold-backed currency.
Perth Mint says the launch for its cryptocurrency hasn’t been set yet, but gave an indication that it would be sometime in the next “12 to 18 months”.