Canberra: The popularity of ‘Bitcoin’ among investors world over has prompted some main countries along with banks and some big financial institutions to make moves to start their own cryptocurrency. With this background, the largest ‘Gold Refinery’ in Australia, ‘Perth Mint’ has announced its own cryptocurrency. Richard Hayes, the chief executive of the ‘Perth Mint’ announced that this currency will be backed by gold and other precious metals. This currency will be reliable as it is backed by Gold, said Hayes.
‘The cryptocurrencies in the market are not suitable for investors as there is a large scale fluctuation in the rates. In this situation, the gold backup can bring about a change in cryptocurrency. It will be important to back Crypto gold or crypto precious metals with gold. All the benefits of distributed ledger technology will be there in these transactions. The transactions will be fast and easy. Most importantly, there will be a backup for this.’ This is how ‘Perth Mint’ chief executive Richard Hayes explained the importance of gold-based cryptocurrency.
‘The present cryptocurrencies available internationally have no backup. They are transferred from one person to the other through computer. In this scenario, gold-backed cryptocurrency like ‘Crypto Gold’ will be of interest for the investors.’, said Hayes. He also claimed that the cryptocurrency by Perth Mint is the first of its kind to be backed by gold. He also praised the ‘Blockchain’ technology and drew attention to the fact that the transparency can be an important factor to attract the investors.
Since the last few years, cryptocurrency is showing its increasing effect at the international level and more and more investors are being attracted by it. The government agencies and major industries are cautioning against it due to the high rate of fluctuations, technical complexity and no backup. The common investors are a bit sceptical about it. Against this background, a cryptocurrency backed by gold can bring about a major change.
At the international level, Russia and China are trying to create an alternative to the US dollar and a possibility of backing this currency by gold. In view of this, a cryptocurrency backed by gold certainly gains importance.