Perth Mint

Perth Mint, Australia’s Largest Gold Refiner, Announces Plans for Its Own Cryptocurrency

Perth Mint, Australia’s Largest Gold Refiner, Announces Plans for Its Own Cryptocurrency

Perth Mint Might Be Entering the Crypto-Market

Perth Mint, the largest gold refiner in Australia, might be launching its own cryptocurrency soon. The state-owned refiner will back its cryptocurrency with precious metals such as gold, silver, and platinum. According to the company, the reason for developing its own crypto-platform is to simplify the process of purchasing precious metals. In developing its own crypto, the long-time refiner will be utilizing blockchain technology. The company believes that this will enable “real-time market visibility” while enhancing the security of precious metals and making them more traceable. Exactly how this will be accomplished is not clear at the moment.

Generally speaking, Perth Mint has been trying to keep its services up-to-date with modern technology. A few years back, the company launched its own online trading platform. By using this portal, its customers can easily and securely invest in precious metals. With the launch of its crypto-gold product, the company thinks that gold and other precious metals will become more accessible while making investments more transparent.

Bringing Investors Back to the Precious Metals Market

The asset-backed cryptocurrency is intended to attract investors back to the precious metals market. Due to the surge in the crypto-market, the gold refiner would like to tap into this growing market by incorporating crypto-technology into its own services. Richard Hayes, CEO at Gold Corporation, the organization that operates Perth Mint, says that his company’s crypto-gold currency will be a good choice of investment for investors who want to stay away from the extremely volatile nature of most cryptocurrencies.

Mr. Hayes feels that an asset-backed cryptocurrency, like the one his company is proposing, should be far more stable than traditional cryptos. The company has not announced an official release date for its crypto-gold product. However, Mr. Hayes gave this vague statement,  “the next 12 to 18 months would result in significant movement in that direction”. It’s quite possible that his company might just be gauging the response from the crypto-community regarding its crypto-related plans.

Building On Its Success

If the Perth Mint’s crypto-gold product is successful, then the company can take advantage of its existing dominance in the precious metals domain to become a major player in the cryptocurrency market. For quite some time, the gold refiner has generated billions of dollars in revenue each year by delivering precious metals to clients in over 100 countries, valued at approximately $18 billion according to the most recent estimates.

Currently, Australia is the world’s second-biggest producer of gold, mainly because of Perth Mint’s operations. Therefore, the company can easily leverage its prominent global presence to capitalize on the crypto-market, even if its crypto-gold product achieves only a moderate level of success. However, there’s no reason to get too excited about this crypto, considering cryptocurrencies and their technology are still in their infancy. A lot more work needs to be done to improve existing crypto-platforms and the blockchain technology that underpins them, according to Ethereum founder and leading crypto-expert, Vitalik Buterin.