Perth Mint developing "digital gold"

[pmbug]

The Perth Mint's release of digital gold certificates for trading, holding and transferring physical gold could have profound consequences for the $US98 billion ($122.5 billion) in gold-backed exchange traded funds.

The technology underpinning the digital gold certificates could have other uses such as the clearing and settlement of equities.

At this stage the digitisation of gold ownership by the Perth Mint is only available to institutional investors, such as banks, who can then offer it to retail customers.

But it is likely that the Perth Mint will overcome the difficult regulatory obstacles to direct retail ownership such as the know-your-customer rules and anti-money laundering regulations.
...
It is noteworthy that Perth Mint did not opt for a blockchain-related solution to its digitisation of physical gold as happened at the Royal Mint in London.

The Royal Mint partnered with the Chicago-based CME Group to create a product called Royal Mint Gold using technology supplied by BitGo and using a "permissioned blockchain protocol" which restricts those who can validate blockchain transactions.
...
The digi.cash technology being used by the Perth Mint allows pre-settled transactions through the creation of digital certificates issued by a central registry.

The Perth Mint exports about $18 billion in gold bullion each year. It also manages more than $3 billion worth of metal held on behalf of 30,000 investors.

Furche said digi.cash was about one month away from finding a solution to the regulatory issues stopping Perth Mint's digital gold certificates being trading on crypto exchanges around the world. The primary regulatory issues are the know-your-customer rules and anti-money laundering laws.

http://www.afr.com/brand/chanticlee...tens-122bn-in-goldbacked-etfs-20180130-h0qeu9

 

[pmbug]

Britain’s Royal Mint has frozen plans to launch a digital gold token after a partnership with U.S. exchange group CME failed and the government vetoed a plan to have the tokens trade on a cryptocurrency exchange, three sources told Reuters.

The demise of the potentially ground-breaking project, named Royal Mint Gold (RMG), highlights the wariness of governments to become involved in the largely unregulated world of cyptocurrencies, which exploded into the public eye last year with the stellar rise of bitcoin.

As other mints and fintech startups race to set up similar products, it could squander the chances of Britain’s Mint leading the field to build gold into a multi-billion dollar digital asset class.

It also reflects a cooling of enthusiasm toward digital assets at the CME, three sources said.

The project would have been the first time a government of a developed economy had become directly involved with a crypto currency exchange, analysts and traders said.

The 1,100-year old Mint announced its plan to issue tokens worth up to $1 billion on a blockchain-based trading platform run by CME in 2016, saying they would give investors an easy way to buy and trade physical gold held in its vaults.

Royal Mint Gold was to launch in the autumn of 2017, but CME decided at the last minute to pull out, leaving the Mint without a trading venue, sources said.

“CME’s management changed, and they walked away, didn’t want to get involved,” one of the sources said.

When a blindsided Mint sought to save the project by partnering with a cryptocurrency exchange, Britain’s finance ministry in early 2018 refused to permit it, seeing the union as too big a gamble with the reputation of the government and the Mint, the sources added.
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Meanwhile, others are launching rival products.

Australia’s Perth Mint and the Royal Canadian Mint are involved with digital gold products that launched this year and trade using technology supplied by fintech startups. Both mints declined to say how much gold had been bought through these platforms.
...

More: https://www.reuters.com/article/us-...blocks-royal-mints-digital-gold-idUSKCN1MZ1SZ

Australia’s foremost precious metals enterprise, the Perth Mint, has today launched an exciting new smartphone app, GoldPass, as part of its commitment to taking Australian gold to the world.

At the touch of a smartphone screen, GoldPass gives retail investors the unique ability to securely buy, store, and sell gold via digital certificates. The app also allows the instantaneous transfer of gold to other approved GoldPass app users.

The Perth Mint launched GoldPass during the opening day of the Precious Metals Investment Symposium 2018 that was held in Perth for the first time.

The mint’s latest secure investment platform, powered by InfiniGold technology, offers investors the innovation for which Perth Mint products are renownedly combined with the flexibility and convenience of being able to manage their wealth at any time.

All GoldPass digital certificates are 100 percent backed by physical Perth Mint gold stored in its network of central bank-grade vaults, with the weight and purity of every ounce guaranteed by the government of Western Australia.
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An investor’s digital certificates, which reflect their gold balances in ounces, are visible in the app’s interface along with any cash holding in the same way that balances are seen on an online banking system.

Using GoldPass, investors may buy Perth Mint unallocated gold and redeem their digital certificates or ounces for physical gold or cash at any time.
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GoldPass is now available for free download for Android and iPhones on GooglePlay and the App Store.

http://news.coinupdate.com/perth-mint-gold-app-gives-investors-the-midas-touch/

 

[rblong2us]

You seem pretty knowledgable slide95 and your thoughts and observations well considered.

Welcome aboard, I hope you like it here (-:

 

[pmbug]

slide95 was a spammer. The post that you liked (and I deleted) was a non-attributed copy/paste of Bron Sucheki's post on silverstackers (with all the links routed through some link ad network):

https://www.silverstackers.com/foru...-own-cryptocurrency.87808/page-2#post-1044855

 

[rblong2us]

Yeah he / it seemed a bit too good to be true but I went for a human response in the hope of something similar coming back.

I didnt see any obvious links though .........

 

[pmbug]

Perth Mint is discontinuing the GoldPass:

GoldPass trading app​

The GoldPass app is being discontinued. Please note the following:

• PMGT holders will still be able to open a GoldPass account for the purpose of redeeming their PMGT for GoldPass certificates.
• No new customers are being accepted.
• GoldPass accounts with a zero cash and precious metals balance will be closed.
• As at 31 May 2023, GoldPass account holders with a positive cash or precious metals balance will no longer be able to deposit cash into the app or purchase precious metal.

The Perth Mint will provide regular updates to customers during an orderly wind down period.
...

GoldPass© Trading App | The Perth Mint

The Perth Mint's GoldPass© app allows investors to buy, store and sell physical gold and silver via digital tokens. The app has been discontinued.

www.perthmint.com

 

[nickndfl]

If a sovereign mint ever offered physical gold certs denominated in weight rather than value they would trade with a premium. Or something like a gold bond cert redeemable with an expiration date would be interesting too.

Those would be a good way for smaller countries to prop up their financial system without letting their gold walk out the door at once.

 

[pmbug]

I saw a thread on this subject necro bumped on an Australian forum that included this news report providing some context for why the Gold Pass program was discontinued:

The company that runs the Perth Mint's cryptocurrency has announced it will no longer support the digital tokens because of alleged breaches of Australian and US laws by the taxpayer-owned organisation, in a move understood to have surprised the mint.
...

More (drama):

Perth Mint cryptocurrency token under a cloud as Singaporean tech company drops support

The company that runs the Perth Mint's cryptocurrency announces it will no longer support the digital tokens because of alleged breaches of Australian and US laws by the mint.

www.abc.net.au

Anyway, I looked for this thread to see what had been posted here on the issue and @nickndfl 's comment stood out to me:

If a sovereign mint ever offered physical gold certs denominated in weight rather than value they would trade with a premium. ...

Those would be a good way for smaller countries to prop up their financial system without letting their gold walk out the door at once.

This is what Zimbabwe is doing with their ZiG program.

 

[nickndfl]

I think Misty is working undercover for Zimbabwe and he stole my idea! It's a conspiracy man!