Oh Boy, Oh Boy Oh Boy! I just LOVE it when the big news wires start to cover what we have been writing about for almost a year AND we are building an Initial Coin Offering around it (you heard it here first). What is it? Digital gold...GAME CHANGER for gold. Obviously I think this is a SUPER read and we have published numerous articles previously to give it even more credence. Oh yeah, contact us here at FintekNews for ICO participation. Oh Boy Oh Boy. (Bill Taylor/CEO)
- "Using bitcoin’s blockchain ledgers as template for gold trades
- Bid to make $27 billion of bullion buying faster, more secure
The blockchain revolution is gunning for the gold market.
Public online ledgers that emerged from the explosive markets for bitcoin, a virtual currency, already have drawn the attention of businesses from banks to retailers who see blockchain systems as a revolutionary way to verify and record transactions. Now, companies including exchange owner CME Group Inc., IEX Group Inc. spinoff TradeWind Markets and financial technology firm Paxos are rolling out similar platforms to bring gold into the digital age.
About $27 billion of gold changes hands every day in over-the-counter markets where settlements can sometimes take days, leaving price risk for buyers and sellers. Using blockchain promises more transparency, security and speedier deals. It also could attract new participants at a time when investors are souring on gold-backed exchange traded-funds, a key source of growth in physical demand over the past decade.
“Digital gold would take market share away from other gold instruments: futures, physical gold bullion, gold ETFs,” Ebele Kemery, head of energy investing at JPMorgan Asset Management, said in a phone interview Aug. 9. Using the technology to trade the precious metal would create “another avenue for where investors can look to find value,” she said.
Bitcoin, the first instrument to use blockchain, has more than quadrupled in 2017 to more than $4,000. The cryptocurrency this year surpassed the price of gold for the first time.
CME Group, the world’s largest exchange owner, teamed up last year with the U.K.’s Royal Mint to create a bullion product called Royal Mint Gold. CME, according to its website, worked with blockchain security company BitGo to provide a “fast, cost-effective and cryptographically secure method” of buying, holding and trading the precious metal..."
Full Story at Bloomberg