by Kenneth Schortgen, The Daily Economist:
On Dec. 1, a Singapore based company called Digix announced they had received an initial infusion of capital to go ahead with their proposed venture of creating a gold backed cryptocurrency.
Using the Etherum Blockchain as its primary platform, Digix intents to evolve its DigixDao system to usher in a ‘digital form’ of the Gold Standard by tokenizing physical gold in a cryptocurrency.
Singapore-based Digix has secured US$1.25 million in seed funding, it announced today.
The funding will help the startup continue building its DigixDAO platform for trading gold-backed digital tokens on the Ethereum blockchain.
By tokenizing gold bullion, Digix is aiming to create a cryptocurrency that can provide more stability for investors. Unlike the majority of cryptocurrencies currently being traded, each Digix token will represent a real, physical asset – in its case, a piece of gold stored in a secure vault somewhere in Singapore.
This reflects the concept of the gold standard, under which most of the world’s currencies were directly linked to the value of gold. Most countries abandoned the gold standard in favor of the fiat system – where the value of money is not based on the value of a commodity – during the 20th century.
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