Bitcoin and gold in bed together? Well what might sound like an unlikely partnership is actually happening as KaratBank has decided to create a new Blockchain based on gold that good old traditional safe and secure investment. Yes it’s happening as the historical practice snuggles up close with the modern cryptocurrency world.
Gold trading does have some advantages, such as a worldwide trust factor as well as a stable price, and KaratBank say they will apply the pros of gold trading to cryptocurrency. KaratBank plan to link their coins, KaratBank Coins (KBC), to a substantial weight of deposited gold in the form of CashGold – 24 carat gold inserted in a bank note.
These coins are backed by the Ethereum Blockchain method which allows for the use of smart contracts and the KaratBank group has an interesting definition of their coins:
‘The foundation of a strategy to promote the development, infrastructure and distribution of a safer, more trustworthy payment means.’
The Karatbank’s vision is that their coin is acknowledged as an electronic payment method for people who traditionally consider gold as a traditional, true, secure and value-stable medium.
- Links to reliable 24 carat gold price.
- Ability to exchange for CashGold at any time.
- Real-time exchanges from any location at any time.
- The ability to use other popular crypto such as Bitcoin to purchase KBC.
- Free and borderless transfers.
- Low service charges.
All these points have become world recognised and led to increased acceptance of KBC payments.
KaratBank have collaborated with Karatbars GmbH, an established player with around 500,000 worldwide users who have invested $120 million, which is a big plus for KBC and will mean more acceptances from worldwide companies for them.
With an on the ball team, and Karatbars proven track record, many foresee good times ahead to KaratBank as traditional and new innovations unite.