The token will represent ownership of physical gold stored in a vault.
It will allow instant transfers and payments through an app and a debit card.
Economist and well-known bitcoin (BTC) critic Peter Schiff announced that he plans to launch his own gold-backed token.
According to him, this new digital asset will seek to offer the “true stability” that, in his opinion, only the precious metal can provide.
Schiff assured that this system will do “all the things that Bitcoin promises, but can never do,” positioning it as a direct alternative to the main digital currency on the market.
For Schiff, the only asset that “makes sense to put on a blockchain is gold”since it considers that this “will maintain its purchasing power.” In their own words, this system will allow “tokenized gold to be used as a medium of exchange, as a unit of account (…) and as a store of value.”
The project is being built on a platform from his company, SchiffGold.where users will be able to buy the precious metal through an application. “The gold will be stored in a vault that is yours (…) and you will be able to transfer ownership of that gold to other people through the application,” he explained.
Besides, Schiff announced that he will offer a debit card linked to gold funds. “If you have USD 5,000 in gold (…) and you buy something for USD 10, USD 10 in gold will be sold to cover the transaction,” he explained. With this initiative, it seeks to enable its clients to “use their gold as a basis for trading” instantly.
It is worth clarifying that Schiff is not having any new ideas. Tokenized versions of gold have existed for yearssuch as Tether Gold (XAUT) or Pax Gold (PAXG). Even CriptoNoticias has published a guide on how to buy tokenized gold on the Binance exchange.