The flexible exchange rate of all national currencies has been introduced after the so-called ‘Nixon shock’ which saw the 37th president of the United States take a series of stern economic measures in order to tackle raging inflation. One of the most significant actions taken by the Nixon administration was the abolishment of the gold standard which provided for the direct pegging of the USD rate to the value of gold.
Such actions resulted in the dismantling of the Bretton Woods system of financial relations between many post-war countries and the transition of the global economy from being dependant on the volume of stored gold to using non-backed fiat currencies as the primary means of payment.
Many economic experts believe that the instances of hyperinflation and economic recessions should be blamed on the abrogation of a gold standard, as well as the utterly incompetent financial policies, carried out by many National Banks.
The newly emerged cryptocurrencies may have provided an alternative to fiat money, but they largely exercise the function of a speculative instrument rather than the fully-fledged mean of payment.
The founders of Golden Currency, a blockchain startup registered in Estonia, believe that the solution to this problem should arrive in the form of a private gold-backed currency that could be seamlessly exchanged to both cryptocurrencies and fiat money.
The project declares ambitious plans for establishing an innovative monetary system based on the global network of Golden banks with the Golden Currency (XGN) being its lifeblood. Apart form the online and brick-and-mortar banks, the banking infrastructure of the Golden Currency project will include the digital fiat-to-crypto exchange, banking cards, POS terminals, ATMs, and a chain of gold vaults. The information about all transactions, whether it is a cash payment, electronic remittance or a wire transfer, will be duly recorded on the Ethereum blockchain in a transparent way, always available for official audits.
The developers have placed a particular emphasis on the fact that they don’t intend to become a full alternative to the conventional monetary system, but rather create an efficient supplement aimed at helping people withstand the negative impact of inflation and political turmoils as well as facilitate the mass adoption of cryptocurrencies.
The project’s whitepaper specifically states that the Gold Currency team will seek any possible mean to make their concept fully compliant with the legislation of the given country so that their users won’t run into trouble when operating with the Golden private money.
As mentioned, Golden is a type of denationalized (private) currency that is issued by the Golden Bank. The value of such currency is pegged to the price of gold with one Golden being equal to approximately 0.025 grams of the gold of the highest karat.
Golden’s truly unique feature resides in the fact that it one of the first stablecoins to be issued in the physical (cash) form, along with the digital ERC-20 token called XGN. The Golden Cash comes in the form of plastic banknotes secured by holograms and watermarks. The notes serve as the mean for an exchange of Golden to the actual gold at the official depositories as well as payment for goods and services. The digital form of Golden (XGN) has all the features and applications of a conventional cryptocurrency.
PGCT is a VIP token that gives certain perks to its owners, such as discounts during the project ICO, the allocation of free Goldens, and various service privileges.
As of now, the Golden Currency project is conducting the pre-ICO token sale which will last until April 24. One XGN token is priced at exactly $1. In order to participate in the ICO, an investor must purchase at least 100 XGN. The PGCT token can also be purchased at this stage of the public sale.
Author: Alex Paulson. Article for: Crypto-Rating.com
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