Australian government-owned Perth Mint has launched a gold crypto token. An InfiniGold Precious metal digitation company supported the launch. The launch is said to be an initiative to digitize its gold assets.
This accreditation certification is issued by Perth Mint and is guaranteed by the Government of Western Australia. This is reportedly the first-ever government-sponsored gold digital token labeled as Perth Mint Gold Token (PMGT) in the world.
The move has made WA the first issuer of Ethereum based crypto token – stablecoin powered by blockchain technology for fiat exchange with S&P and AA+ rating.
The coin will be similar to DigixGlobal in Singapore and Goldmint in Russia, whose values are fortified in terms of actual gold. This coin will be an addition to the growing number of such gold valued digitized coins.
InfiniGold provides a decentralized platform to digitize gold and other valuable metals, which will be utilized by Perth Mint now onwards. The apparent objective is to cash in the popularity of cryptocurrencies minimizing the risk of volatility.
Position of other Mints
However, other mints haven’t chosen the unpredictable and risky path of cryptocurrencies so far. Last year, the British Royalties had canceled their plan to launch digital gold token due to the ban imposed by the United Kingdom Government on token trading at a crypto exchange.
Australia’s Gold assets on the digital path
China and Australia are among the top gold producing countries in the world. China produces 400 tons/annum (TPA ) and Western Australia produces 310 TPA. Western Australia’s Perth Mint is one of the largest gold and other precious metal exporters in world distributing across 100 countries worth $18 billion metal assets, including gold, silver, and platinum bars and coins.
The stronghold in the global precious metal commodity market has compelled Australia to take the much-awaited step to introduce a digital substitute for the physical metal assets along with assurance certification.
Richard Hayes, Perth Mint, CEO, said,
The digitization of gold via a public ledger is a natural progression for the global community markets. It will promote gold as a mainstream asset, enhance its accessibility and offer greater liquidity, transparency, and auditability of the real assets backing this type of digital token.