As we know that presently China is the world’s largest gold producer, which has a capacity of producing 400 tonnes in a year. Australia is the second-largest gold producer in the world with a capacity of 310 tonnes per year.
Australia’s Perth Mint which is the world’s largest refinery announced the launching of a gold-backed Ethereum token which is guaranteed by the government of Western Australia.
Perth mint refines more than 92% of Australia’s total gold production in a year. Perth Mint has about 3.5 billion dollars of gold and other assets under his influence.
Perth Mint is completely owned by the government of Western Australia and all the gold in the organization is fully guaranteed by the government of Western Australia, which also provides the rating.
Hard Fork also claimed that the Perth mint gold token (PMGT) is a unique step to create a gold token on a public Blockchain which is backed and guaranteed by the government of a country.
The new step of creating a gold token will also help in digitalizing the Perth Mint inventory. This all was started back in October 2018 because after October 2018 Perth Mint has started to issue Gold pass digital certificate. These Gold pass certificates are now backing PMGT ( Perth Mint Gold Token). Each and every PMGT is an ERC 20 standard Cryptocurrency token which is backed in the ratio of 1:1 by Gold pass certificate and it is issued jointly by Infinigold and Perth Mint.
If we compare PMGT with Cryptocurrency than PMGT is a new gold-backed stable coin. The price of PMGT should remain steady and they are backed by some other assets also. PMGT gets real-time liquidity as given by its makers and is connected to the gold pass app. You can also convert PMGT into Gold pass digital certificate by verifying your KYC with Perth Mint.
By the digitalization of gold, Perth Mint CEO said that it will promote gold as a mainstream asset and offer greater liquidity and transparency in its selling and buying.
It is also to be kept in mind that Hard Fork has reported that two-thirds of the stable coin which was connected with gold have failed since 2017.
The involvement of Perth Mint with this stable coin provides credibility to it which is necessary for increasing its market value as Perth Mint is one of the largest refinery of gold in the world.
If we compare with respect to physical gold then it is easier to carry PMGT. You can set up and customize your own PMGT transfer.
You can use your PMGT as collateral for taking a loan from public banks as this is guaranteed by the government so there won’t be much problem with this.
You can break your share in as many pieces as you want and can use them in different places of your choice. You can use these in wide applications in the open market also.