Do you know what gold-backed cryptocurrency is? If not, you should definitely check out this interesting and informative article now. Much has been said about cryptocurrencies and whether the market will be able to mature even more with the incoming Biden administration. However, as the […] Janet Yellen, Joe Biden’s pick for the Treasury Secretary, has revealed her policy for cryptocurrencies, including bitcoin. She claims that cryptocurrencies a Full list of stories by category Cryptocurrencies – 2021-01-20 – 2
In general, a cryptocurrency (or crypto for short) is a medium of exchange and can be used to send and receive payment in a completely digital way. Each transaction using cryptocurrency is stored on a publicly distributed ledger that has been secured with cryptography. The coins themselves are stored on an exchange or in a digital wallet.
However, with concerns over Bitcoin and other altcoins’ volatility, a solution was needed to stabilize the price. With that, gold-backed cryptocurrencies were born.
Gold-backed cryptocurrencies are a new class of digital currencies designed to offer price stability based on a stable asset, gold. The concept itself is simple. Each token or coin is the equivalent of a certain amount of gold (in many cases, this is 1 gram of gold per coin). A purchaser buys the token representing the asset without ever buying the asset (in this case gold) itself. The gold remains locked up in a secure location until the trader decides they would like to make an exchange.
The blockchain accounts for each of the tokens issued, while the company is responsible for actually storing the asset that backs it. Cryptocurrency traders will need to do the necessary research on the token and purchase location to validate these claims before making an investment. Tokens can typically be purchased from the cryptocurrency creator website or from a precious-metal cryptocurrency exchange like Gold Exchange.
With this knowledge in mind, you might be wondering what these stablecoins look like in action. Here are some examples of gold-backed cryptocurrencies that are currently available for public purchases.
Cache Gold was created by a Singapore-based company that released tokens that were each equivalent to one gram of gold. All gold is audited and insured for added buyer security and can be purchased on the website cache.gold.
GoldCoin is an ERC-20 gold-backed cryptocurrency that can be purchased in any amount, at any time. Each GoldCoin is the equivalent of 1/1000 of an oz of 99.9% pure gold stored in GoldCoin’s vaults, which are regularly audited. Transparency is ensured, as audit updates are provided directly on the website. Tokens can be purchased on GoldCoin.com or on GoldExchange.com using a debit or credit card.
Based out of Brisbane, Australia is the Gold Standard AUS token. Each token is the equivalent of a single gram of gold bullion, which is stored in a reserve vault. For security purposes, this has been insured and verified by BDO. Gold Standard tokens can be purchased on goldsilverstandard.com.
The demand for blockchain-based digital assets backed by scarce precious metals continues to gain appeal for investors who are looking for safe long term investments. At the same time, gold-backed cryptocurrencies continue to be refined and new coins continue to be developed. To avoid investing in a project that might not have a future, traders are wise to take note of the following considerations:
Although you may not experience Bitcoin-level growth right away, gold-backed cryptocurrencies continue to offer great potential to both amateur and experienced traders.
Interesting related article: “What is Blockchain?“
Author: By Alexander Joe
Yellen Wary of Cryptos Use for Illicit Financing
Much has been said about cryptocurrencies and whether the market will be able to mature even more with the incoming Biden administration. However, as the 46th President moves into the White House, comments about cryptocurrencies from some of his top cabinet picks aren’t exactly promising.
As part of her confirmation process, Janet Yellen, President Biden’s pick for Secretary of the Treasury, recently appeared in a virtual hearing at the United States Capitol. Questions for the Federal Reserve’s former head varied, although she brought up the issue of cryptocurrencies when discussing possible amendments to combating terrorist financing.
Answering New Hampshire Senator Maggie Hassan, Yellen pointed out how she would respond to the growth in usage of “emerging financial technology to fund terrorist organizations worldwide.
In her reply, Yellen explained that cryptocurrencies had become a “growing concern” for terrorist financing, and that it was time for the Treasury Department’s combating methods to evolve with the emergence of new technology.
“Cryptocurrencies are a particular concern. I think many are used at least in a transaction sense mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering doesn’t occur through those channels,” Yellen said.
Yellen hasn’t exactly been a fan of cryptocurrencies. Speaking at the 2018 Canada FinTech Forum, the former Federal Reserve Chairperson bashed cryptocurrencies as being “anything but useful.” At the time, the crypto winter was in full force, and the market had just lost a chunk of its value. Yellen went after digital assets for their volatility, explaining that they weren’t useful as currencies or mediums of making transactions.
It is unclear whether Yellen has had a radical change in perspective so far. Last month, Nouriel Roubini, a famous Economics professor and crypto basher, said in a Twitter conversation that the policymaker would be unrelenting in her crackdown against the crypto industry.
@jchervinsky : you are delusional. Biden’s team, starting with Yellen who was my boss at CEA, will crack down on this criminal tax evading & AML-KYC-TFC-evading crypto/shitcoins cesspool much more than Mnuchin. Get a life as you have become a crypto hired gun cheerleader/enabler https://t.co/558ziHBUWg
— Nouriel Roubini (@Nouriel) December 24, 2020
Citing his experience working with Yellen at the Council of Economic Advisers (CEA), Roubini claimed that the incoming Treasury Secretary would go even farther than her predecessor, Steve Mnuchin, in clamping down against the “criminal tax-evading & AML-KYC-TFC-evading crypto/shitcoins cesspool.”
On the flip side, some crypto believers aren’t overly worried. Last month, crypto analyst Max Keiser told Express UK that any stringent moves from the Biden administration would have no effects on the Bitcoin price. As the analyst explained, Bitcoin had attained “escape velocity” from regulators, especially with other countries becoming aware of it,
Keiser added that any stringent regulations from the government would only require the Treasury Department to print more money – a phenomenon which would only increase demand for Bitcoin. With other countries already adopting cryptocurrencies one way or another, American regulators have little to no power to stop this wave.
Author: FOLLOW ON
Janet Yellen Reveals Plans for Bitcoin — Sees Cryptocurrencies Used Mainly for Illicit Financing
Janet Yellen, Joe Biden’s pick for the Treasury Secretary, has revealed her policy for cryptocurrencies, including bitcoin. She claims that cryptocurrencies are mainly used for illicit financing and their use needs to be curtailed.
In the Senate hearing to consider Janet Yellen’s nomination as Secretary of the Treasury on Tuesday, Yellen was asked about cryptocurrencies. She is Joe Biden’s pick to lead the Treasury Department under his administration.
The crypto question was asked by Senator Maggie Hassan (D-NH), who talked about “the importance of treasury programs to combat the financing of terrorists and criminal organizations.” She said she had raised the issue in previous hearings with Treasury Secretary Steven Mnuchin.
“The bipartisan National Defense Authorization Act passed earlier this month and it included a provision led by Senator Warner that established an advisory group with Treasury to counter new ways that terrorists use emerging financial technology,” she began. “One area of growing concern, for example, is the potential for terrorists and criminals to use cryptocurrency to finance their activities.”
Senator Hassan proceeded with her question: “So Dr. Yellen, can you outline some of these emerging technological concerns and how Treasury should combat new forms of terrorists and criminal financing?”
Yellen replied: “Senator, I think you are absolutely right that the technologies to accomplish this change over time and we need to make sure that our methods for dealing with these matters with tech terrorists financing change along with changing technology.” The incoming Treasury Secretary elaborated:
Cryptocurrencies are a particular concern. I think many are used, at least in a transactions sense, mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering (sic) doesn’t occur through those channels.
Following Yellen’s Senate testimony, the crypto community pointed out several flaws in her statements. Russell Okung, the pro football star who recently became the first NFL player to get paid in bitcoin, commented: “Treasury Sec nominee Yellen says bitcoin is a concern for terrorist financing, money laundering … as if the USD isn’t. Don’t be distracted. The things of old are passing away, fight for your future.”
Dan Held, Growth Lead at crypto exchange Kraken, pointed out: “0.3% of all cryptocurrency activity in 2020 was illicit. 90% of US dollars have cocaine on them. Which one is ‘used by the bad guys’ again?”
Morgan Creek Digital partner Anthony Pompliano similarly described: “Janet Yellen stated today that cryptocurrencies are concerning because of terrorist financing and money laundering. She forgot to mention that the US dollar is the choice currency of criminals around the world.” He added:
The large banks launder more money than the entire bitcoin market cap.
Some people referenced the “bitcoin sign guy,” who rose to fame when he held up a sign that says “buy bitcoin” behind Yellen as she testified in a previous Senate hearing as the Federal Reserve chairman. Perhaps she “missed the sign,” some bitcoiners suggested. Ivan on Tech tweeted Wednesday: “Janet Yellen promises to go after bitcoin in a recent interview. She is still salty for that bitcoin sign incident.”
Yellen is not the only one suggesting recently that most crypto activities are for illicit purposes. Last week, the president of the European Central Bank (ECB), Christine Lagarde, said that bitcoin “has conducted some funny business and some interesting and totally reprehensible money laundering activity.” However, a famous economist quickly contradicted her, calling the ECB chief’s statement “absolutely outrageous when we all know that the vast majority of money laundering globally is conducted in fiat currencies, particularly in U.S. dollars and euros.”
What do you think about Janet Yellen’s cryptocurrency remarks? Let us know in the comments section below.
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Full list of stories by category Cryptocurrencies – 2021-01-20 – 2
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