Blockchain embraces gold to provide stability and growth for crypto assets

cointelegraph.com:

As people look for a stable way to enter into the crypto market, this gold-backed digital ecosystem with a crypto token and NFTs offers a solution.

Gold, a precious metal known for its scarcity and durability, has been the primary store of value since ancient civilizations. For thousands of years, people prized gold in their trades and investments. Even in the modern world, gold reserves are a major indicator of how strong and reliable a country’s economy is. Despite the gold standard being largely abandoned in 1971, governments and central banks worldwide still hold thousands of tonnes of gold in their reserves as a backup, showing that old habits die hard.

In the era of cryptocurrency, a digital form of gold has emerged. Blockchain technology has enabled the proving and tracing of digital ownership of any asset transparently, paving the way for gold reserves to be digitized and represented by gold-backed tokens.

Just like how stablecoins like Tether (USDT) and USD Coin (USDC) are pegged to the U.S. dollar, gold-backed tokens are also pegged to the real-time price of gold. Offering stability for users who want to hedge against both inflation and the volatility of the crypto market, gold-backed crypto tokens also simplify and democratize investments in gold by making it globally accessible.

The potential of gold-backed crypto tokens accelerates traditional gold companies’ jump into Web3. International Precious Metals (IPM), a team of precious metals specialists with over 250 years of combined industry experience, announced that they are bringing their gold expertise to the crypto market with the launch of the gold-backed International Precious Metals Bullion (IPMB) coin and the accompanying Globally exchanged Metal (GeM)