What is a Digital Gold Currency (DGC)
Digital gold currency (or dgc) is a form of electronic money (or digital currency ) based on mass units of gold. It is a kind of representative money , like a us paper gold certificate at the time (from 1873 to 1933) that these were exchangeable for gold on demand. The typical unit of account for such currency is linked to grams or troy ounces of gold, although other units such as the gold dinar are sometimes used. Dgcs are backed by gold through unallocated or allocated gold storage.
Digital gold currencies are issued by a number of companies, each of which provides a system that enables users to pay each other in units that hold the same value as gold bullion. These competing providers issue a type of independent currency. Universal currency[ edit ] proponents claim that dgc offers a truly global and borderless world currency system which is independent of exchange rate variations and political manipulation. Gold, silver, platinum and palladium each have recognized international currency codes under iso 4217.
Asset protection[ edit ] unlike fractional-reserve banking , dgcs hold 100% of clients’ funds in reserve as gold, silver, and/or platinum, which can be exchanged via digital certificates. Proponents of dgc systems say that deposits are protected against inflation , devaluation and other economic risks inherent in fiat currencies. These risks include the monetary policy of countries or territories, which are said by proponents to be harmful to the value of paper currency.
November 15 2019 posted by blog team the rise of cryptocurrency in recent years has led to a surge of interest in gold-backed digital currencies. Some may wonder why risk-averse gold investors would be interested in entering a market known for volatile cryptos. Conversely, the idea of digital gold has increasingly held appeal to a technologically savvy demographic looking for an alternative way to store wealth in the modern world.
The ceo of digix explains why he thinks the company’s asset-backed virtual currency enabled by blockchain technology has the potential to allow gold to have a place in the digital realm. The introduction of blockchain technology gave new meaning to the term “financial inclusion”. The concept of non-fiat digital currencies that could be transparently traded and transferred around the globe at the click of a button have set the tech field ablaze with innovation on such protocols around them.
If you wanted to create an entirely new world, like that in “star wars,” or in neal stephenson’s “cryptonomicon,” you would certainly need an entirely new form of money. As nathaniel popper points out in his new book, “digital gold,” which tracks the roller-coaster ride of the digital currency called bitcoin, it’s not surprising that part of its appeal to its devotees is that it could enable the creation of that new world, a libertarian utopia. Bitcoins — which are created, or mined, via complex computer algorithms, and are stored in digital wallets — offer privacy: although every transaction is recorded, the users are identified only by wallet ids, which are difficult, if not impossible, to track back to their owners.
For investing in gold, you can take these routes – Gold ETFs, gold MFs, physical gold & now digital gold.
Indians’ love for gold is no secret. We buy the yellow metal for consumption and for investment. For investing in gold, there are few routes you can take – you can invest via gold exchange-traded funds (etfs), gold mutual funds, physical gold like coins and bars, sovereign gold bonds (sgbs) and now digital gold. To cash in on our thirst for gold, mobile wallet providers like paytm , phonepe etc. Have started offering digital gold. Even google pay have jumped into foray. Similarly, motilal oswal investment services is selling digital gold via its product me-gold.