The growth of 42%
The World Gold Council plans to launch a digital form of gold.
This step can revolutionize the London physical gold market worth 900 billion, creating a new method of trade, calculations and providing ingots.
This new format will allow us to use gold as a digital deposit as part of the Golden ecosystems, ”said David Tate, the Executive Director of the World Council for Gold, an industry organization representing the interests of gold miners.
, while many investors value gold precisely for its physical nature and lack of risk of a counterparty, Tate, claims that the mats should be in an interview with the Financial Times. They are digitized to expand the market coverage.
“We are trying to standardize this digital layer of gold so that various financial products used in other markets can be used in the gold market in the future,” Tate, a former banker. “My goal is that many assets of assets around the world look at it differently,” he added.
this week, gold reached a record high price and has doubled in the last three years. But, despite this, for most banks and other investors, this is a static asset that does not bring income on their balance sheets. Tate claims that if the gold was digitized, it could be used to satisfy margin requirements and as a pledge, for example, with benefit for themselves.
“From the point of view of providing, banks will earn a lot of money, because they will get the opportunity to use gold on their balance sheets,” Tate said. Gold ”or PGIS will allow banks and investors to buy and sell fractional ownership of physical gold stored in separate accounts. It will be tested with commercial participants in London during the first quarter of the next year.
The structure is based on a small group of main participants who jointly own basic gold in the trust structure, according to the White Book published on WGC and the lingelaters law firm. This is the last step in the long -term WGC project to digitize the gold market after launching a database on the blockchain for oil refineries and gold ingots.
Despite the rapid increase in prices, some industry representatives believe that yellow metal, one of the oldest assets in the world, risks losing its way to give way to cryptocurrencies and stakebrandons, tied to traditional assets.
introducing a new digital form of gold, WGC hopes to succeed
