Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Peter90 on March 21, 2024, 08:01:46 PM
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Stablecoins can be classified in 6 groups based on what kind of assets they are backed by
6 Types of Stablecoins (based on what they are backed by)
1. Stablecoins backed by fiat currencies
2. Stablecoins backed by hard currencies
3. Stablecoins backed by cryptocurrencies
4. Stablecoins backed by financial products
5. Commodity-backed Stablecoins
6. Algorithmic Stablecoins
The 6 Types of Stablecoins (https://www.altcoinstalks.com/index.php?topic=317893.0)
This thread is about #2, Stablecoins backed by hard currencies (in particular by gold)
What are gold-backed cryptocurrencies
"Gold-backed cryptocurrencies are tokens designed to represent a specific amount of physical gold holdings in a digitalized format, which also can be redeemed by the holders whenever needed.
These tokens offer a unique investment option by combining the stability of gold with the innovation of digital currencies.
The operation of gold-backed cryptos is straightforward: a designated amount of gold is securely stored, and an equivalent number of crypto tokens is issued. Transparency is crucial, with reputable issuers providing regular audits and proof of gold reserves.
Transactions with gold-backed cryptos are conducted on blockchain technology, ensuring secure, immutable records of ownership and transfers. This feature, along with lower operational costs compared to physical gold handling, makes them appealing for global investments.
Investors benefit from the ease of transferring these digital assets internationally, bypassing the complexities of physical gold logistics."
creditcoin.org (https://creditcoin.org/blog/gold-backed-cryptocurrency-companies/)
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(https://i.ibb.co/KxwFzXB/1.png)
I already opened a thread about Tether Gold (https://www.altcoinstalks.com/index.php?topic=315185.0)
The second gold-backed SC by market cap is Pax Gold
KAU (gold) and KAG (silver) are Kinesis' currencies (https://www.altcoinstalks.com/index.php?topic=129595.0)
VRO is VeraOne
It looks like these are the 4 biggest issuers of precious metals backed SC by market cap
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What is a Gold-Backed Cryptocurrency?
A gold-backed cryptocurrency is a type of digital currency where a specific amount of physical gold backs each unit. Unlike traditional cryptocurrencies such as Bitcoin, which derive their value from factors like supply and demand dynamics and speculative trading, gold-backed cryptocurrencies aim to provide stability by tying their value directly to the price of gold.
Typically, each cryptocurrency unit represents ownership or claim to a corresponding amount of gold held in reserve. This reserve is often stored in secure vaults and audited regularly to ensure transparency and trustworthiness. The value of the cryptocurrency is linked to the market price of gold, providing holders with a more stable and reliable store of value compared to other cryptocurrencies.
Gold-backed cryptocurrencies combine the benefits of blockchain technology, such as fast and secure transactions, with gold’s intrinsic value and stability, making them attractive to investors seeking a hedge against currency devaluation or economic uncertainty. They can be used for various purposes, including digital payments and remittances, and as a diversification tool in investment portfolios.
(https://i.ibb.co/GHSKDQD/1.png)
apmex.com (https://learn.apmex.com/investing-guide/what-is-a-gold-backed-cryptocurrency/#:~:text=A%20gold-backed%20cryptocurrency%20is,physical%20gold%20backs%20each%20unit)
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(https://i.ibb.co/QMyXnZv/clinq.png)
Benefits for countries and members
Gold Sovereignty
Retain control over your physical gold preventing gold drainage from Africa.
Mobile Money Payments
Integration with prevalent systems like USSD, ensuring smooth transitions and user accessibility.
Anti-Inflationary Solution
Gold-backed payments empower African country currencies, offering stability against inflation and de-dollarisation.
Taxation and Law Enforcement
Advanced features for compliance, including user identity and flexible taxation tailored to local needs.
BRICS-ready Solution
Proactive gold-backed system integration positions BRICs candidates at the forefront of financial innovation.
Cheaper and Faster Payments
Central banks control transaction costs on a network, ensuring low fees across National and International payments.
https://clinq.gold (https://clinq.gold)
White Paper (https://docs.clinq.gold/introduction)