Stable coins play a fundamental role in cryptocurrency markets.

Everyday, billions of dollars worth of cryptocurrency swap hands across a multitude of exchanges. While some exchanges offer fiat pairs, most tend to offer crypto-crypto trade pairs. The main cause of this is that fiat pairs involve an extensive time dedication for regulatory clearance. The cryptocurrency market is expanding, with numerous tokens being listed on a wide variety of exchanges every day; the pace of market expansion cannot be sustain if exchanges limit themselves to fiat pairs.

As a solution to the dilemma of regulatory delays for fiat pair establishment, most exchanges, especially the ones with the heaviest daily volume, opt to provide stable coin pairs. Stable coins are cryptocurrencies that are typically pegged to $1. This makes it possible to trade any cryptocurrency for a dollar equivalent without having to deal with the regulatory efforts involved in an actual fiat pairing.

While current stable coins have seen wide-scale adoption, they fail to resolve the key problem and are just a band-aid on the primary problem at hand. One key reason for this is even the most popular stable coin, Tether, faces some degree of confrontation for not being able to properly prover the backing of the Tethers being issued. Given that stable coins play such an important role in the cryptocurrency markets, a new project is developing the stable coin that will have the ethos to deserve the importance a stable coin plays in exchange trading; the primary cause of this is that the stable coin to be issued is going to be backed by one of history’s most trusted assets.

Tokenized Gold

Centuries ago, gold was the most widely accepted value storage. As time passed, nations adopted notes money that represented certain amounts of gold; it was easier to transport paper rather than a heavy metal. Over time, governments began to issue surplus notes that were unbacked by gold. This became necessary in times of debt issuance to sustain surplus government spending.

Today, we have reached a point where most national currencies are fiat currencies, unbacked by nothing except people’s credibility in the government printing them.

Golden Currency resolves the dilemma of fiat currencies while maintaining the ease of transferring value. This new currency abides by the age-old concept of backed currencies; in fact, it’s backed by gold. However, as the gold is represented by Golden Currency, a means to transfer gold through a tokenized existence becomes possible. Thereby, Golden Currency becomes one of the few non-fiat currencies on Earth.

While nations may take time to consider the value such a currency can serve, the cryptocurrency markets will be immediate prime beneficiaries of Golden Currency.

• Unlike current stable coins that are backed by fiat, Golden is backed by an asset; this stable coin will be immune to political conflicts, thereby ensuring the widely used stable coin pairs do not get disrupted.

• Golden will provide blockchain enabled transparency over the assets backing the circulation. As existing stable coins, including Tether, face scrutiny over its backing, this will be a pioneering step ensuring a stable coin’s backing is easily under the public eye at any point.

Wrap-Up: Golden Currency is evolving the age-old value storage of gold into a more utilizable format by tokenizing it. One of the most important benefits of Golden will be exploited by building trading pairs with it.

Essential Links

🌐 Website: https://www.goldencurrency.world/
💡 Whitepaper: https://www.goldencurrency.world/white_paper_eng.pdf
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