Forget Bitcoin And Cryptos, Gold Is The Ultimate Global Currency - Glint Pay
(Kitco News)- Whilecompanies are racing into the future to create the latest digital currency, onecompany has looked to the past for the ultimate global currency.
U.K.-Basedfintech start-up Glint Pay continues to grow in popularity throughout Britainand Europe as the company has breathed new life into the gold market,monetizing the precious metal for the 21 century.
Thecompany made international headlines in late 2017 after it announced apartnership with Mastercard and Lloyds Banking Group to create a gold-backeddebit card. Through its online app, consumers can load money into their accountand then convert that money to gold. Consumers can then use the debit card tomake everyday purchases.
Inan interview with Kitco News, co-creator of Glint Pay, Ben Davies, said thathis firm has no intention of moving into the frenzied cryptocurrency sectorbecause the world already has the perfect international payment system.
Headded that bitcoin’s volatility, and short history, makes it unsuitable as aglobal currency. Kitco.com aggregated markets show bitcoin is currently tradingaround $8,400, down more than 57% from its record highs inmid-December.
“Itwill take decades before cryptocurrencies are truly accepted universally,”he said. “The reality is that we already have a currency that is universallyaccepted and understood. And we have made it accessible to everyone.”
Daviesadded that gold’s attraction as a global currency is growing as consumers worryabout the purchasing power of their fiat money. He said that the explosivegrowth in credit over the years has created massive wealth inequality, which isfueling geopolitical uncertainty.
“Therehas been a rupture in the social fabric throughout Europe and it goes back to2008 when we saw a massive decay in financial markets,” he said. “What we aresuggesting is that people should think about gold as a better currency.”
Lookingat the U.K. in particular, Davies said that he expects gold demand to rise inthe next few years as consumers protect themselves against a weakening pound.He added that he sees gold as the ultimate “equalizer” for consumers
“Let’sbe frank, the sterling is going to be under pressure for a long time,” he said.“We have huge current account deficits. We have real fiscal issues with twindeficits and the premium in equities markets and gilts are being undermined.”
Butit’s not just the U.K that is dealing with currency problems. Currency analystshave warned that the U.S. dollar could be facing a long-term bear market as thenation deals with growing government debt and potentially higher interestrates.
WhileGlint has rolled out in Britain and Europe, Davies said that his firm islooking to introduce its gold-backed debit card in North American and Asian in2018.
Thevalue of gold in an account will be based on interbank exchange rates and thereare no hidden charges for users, according to Glint.
Glint is a fully regulated financial company and regulated by the U.K.’s FinancialConduct Authority, with clients’ money stored in segregated bank accounts.Physical gold holdings are legally allocated to each client and held in aLondon Bullion Market Association-accredited Brink’s bank vault in Switzerland.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.