Golden Currency: Cryptofunding a gold-backed international private currency

How should we back our currencies? This question has troubled economists for a long time. A currency should be a reliable medium of exchange, but its reliability is based on the trust of a sufficiently large amount of people. Many complain that the government-backed fiat currencies of today do not deserve that trust, since they are subject to arbitrary political decisions. Cryptocurrencies, independent of central control, have been offered as an alternative, but they are simply too volatile, unfamiliar and non-liquid to be widely accepted.

https://www.goldencurrency.world/

Returning to the more trustworthy gold standard of the past is a popular pet cause in libertarian circles, but it seems politically unfeasible. Governments would not surrender power over currencies lightly, especially when exercising this power is widely accepted as the simplest method of combating recessions. The Golden Currency company offers an intriguing alternative: a private currency backed by a gold reserve that would be accepted across borders and could also be easily exchanged to either fiat or cryptocurrencies.

What does this project entail?

The company now plans to carry out the first test issue of its eponymous currency before the ICO, which will begin in September. Certain details will have to be clarified in a special memorandum ahead of the issue. It is estimated that the worth of 1 Golden banknote will be fixed at 0.02 grams of gold. Although Golden Currency will not be a cryptocurrency per se, it will make extensive use of blockchain technology. Ownership of Golden assets and all related transactions will be tracked using IPFS and the Proof of Assets blockchain protocol. Golden Currency will hand over management of its gold reserve to an independent company or companies and will ensure regular audits. Those dealings will also be recorded on the blockchain and the information will be available to owners of Golden banknotes and/or the project tokens. Golden Currency will exist in both electronic and paper forms. Golden owners will be able to exchange their banknotes for their worth in gold at any point.

Golden Currency promises to set up an extensive financial infrastructure around its currency. Golden Bank could be interfaced with through ATM machines, point of sale terminals, Golden cards, a website and a mobile app. The online bank will also be integrated with a decentralized blockchain-powered exchange that will allow users to trade Golden for fiat or cryptocurrencies and back. Golden Exchange users will have access to all the necessary market data. Golden Bank will support accounts for different currencies that could be opened on the go. It will also allow for automatic real time conversion of assets to the required currencies on payments or withdrawals at the Golden Exchange price.

In addition to its currency, the company will also issue two kinds of tokens. The Pre-ICO Golden Currency Token (PGCT) will function as an exclusive elite token. PGCT holders will receive an equal amount of ICO Golden Currency Tokens (IGCT) for free. A certain amount of PGCT will also entitle them to free Golden banknotes. After the first issue, PGCT holders will become eligible for discounts on the purchase of further Golden banknotes and various Golden infrastructure services, as well as special VIP services.

Why invest in Golden Currency?

Golden banknotes are meant to be a stable, reliable and easily accessible alternative to both fiat and cryptocurrencies that is also easily convertible to either. This should make it attractive to traders and investors looking to diversify their portfolios. It could also be useful for individuals and businesses that want a currency that could be used in different countries. Legal restrictions may make such use impossible in many parts of the world, but even then it will be possible to convert it. The company also suggests that governments in developing nations may find it useful as a transitional currency, though this is clearly a far-off prospect. The easy convertibility between different currencies should make this especially interesting for cryptocurrency holders. Separately from that, IGCT will be tradeable on exchanges.

The company was started by experienced businessmen who are steeped in the theory of private currencies (as outlined by Friedrich Hayek and Milton Friedman) and pay close attention to the legal status of both ICOs and the Golden Currency. Their emphasis on transparency and security, reinforced through the blockchain, should provide an important early boost to the currency's credibility. Golden Currency also has an ambitious strategy for its growth that includes acquiring banks all over the world, starting with the United States, Europe and China, and adapting other blockchain banking developments as they become available.

https://www.goldencurrency.world/

Token sale and pre-sale details

The exact distribution of funds will depend on the amount raised.

During the pre-sale, PGCT will be sold instead of IGCT at the same price. During the ICO, PGCT holders will be rewarded with free IGCT. A total of 7,600,000 PGCT will be issued. The total issue of IGCT will be 250,000,000. Any unsold tokens will be burned.

A 21st century asset-based currency

Both fiat and cryptocurrencies are fundamentally unreliable as means of exchange due to the inherent instability of the former and the volatility and other limitations of the latter. A gold-backed private currency, especially with the added security provided by the blockchain, seems like a brilliant solution – provided that it can be carried out as promised, and does not run afoul of changing regulations or other unexpected complications.

At present, much of the Golden Currency project's details are still in the air. This may not last for much longer. The decision to launch the first issue early was taken recently and could be seen as a positive sign, especially if it is followed up by much-needed clarity on the exact worth of the banknotes, the Golden-to-gold exchange procedures and other such specifics. If launched, the widespread adaptation of Golden Currency may take some time, but eventually it may become an important alternative stable currency and a link between the mainstream economy and cryptoindustry.

Links:

Website: https://www.goldencurrency.world/
WhitePaper: https://www.goldencurrency.world/white_paper_eng.pdf
Telegram: https://t.me/joinchat/GljMN0cgk-_pKAc4mDBPmQ
Facebook: https://www.facebook.com/GoldenCurrency.world/
Twitter: https://twitter.com/goldencurrency/
Medium: https://medium.com/goldencurrency
ANN: https://bitcointalk.org/index.php?topic=3217315.0
Author: https://bitcointalk.org/index.php?action=profile;u=980049

Disclaimer
This review by Bonanza Kreep is all opinion and analysis, not investment advice.