GoldMoney to now store and deal in physical gold at Mint

17 January, 2017 | By Aapt Dubey

In 2015, GoldMoney (BitGold then) was founded with the objective of making gold based savings secure and accessible to everyone, making gold a currency for everyday payments. Essentially, GoldMoney is the only online financial network that allows users to spend, sell and save in 100% gold instantly. A traditional bank doesn’t allow completer control and ownership of metal based savings and Gold Money does just that through its global network connecting bullion banks, vault custodians, auditors and various other payment networks and systems backed by exceptional customer service- all under one integrated digital experience.

The firm had recently added the Royal Canadian Mint to its storage network. This meant that users of GoldMoney’s enabling them to buy real gold blocks in Mint’s Ottawa vault in denominations starting from just 35 cents. There will be a service fee charged of 0.5 per cent. However there will be no storage fee charged for up to 1 kg of gold. Before this critical announcement, the only storage and clearing house on GoldMoney’’s network for physically transferring gold between the purchaser and seller was The Brink’s Co.

 

Interestingly, the GoldMoney network now has over 1.3 million user accounts in over 150 countries of the world. The format of the organization also allows a user to transfer or gift a gold tile using a text message or email; or redeem balances held in gold into a prepaid Mastercard or local currency in a bank account. Speaking on the announcement, Josh Crumb, co-founder and Chief Strategy Officer of GoldMoney said that the Royal Canadian Mint will play the role of a custodian for storing and verifying the physical gold tiles for now. However, he said, they plan for take the talks further between their Toronto headquartered startup and the Crown Corporation. He has said earlier on record that they are looking forward to working along with the Mint to test awareness oriented  joint marketing initiatives with the objective of increasing knowledge and accessibility of precious metals.

Senior officials who wished to remain anonymous said that the partnership is still in an early phase and it will not be appropriate to discuss about hat other initiatives can possibly come out of this announcement of providing superior secure storage vaults in Ottawa. However, we spoke to Jon Moore, vice President of sales at the Mint, and he said that the focus will remain on showcasing Canada’s leadership role in the precious metal industry of the world.

It is also worthy of mentioning here that this is not the first time that Mont made a foray into the world of digital payments. In 2012, as Bitcoin was just taking off, the Crown Corporation had actually finalized a plan for creating a digital cash platform. This project, also called the MintChip, was however just a dipping of toes n the water. After rigorous rounds of testing MintChip as a platform for transferring money online between two entities, the project was canned. It was however revived later but only to be sold off to a private Toronto based payments firm called nanoPay. The idea is not novel though. Publically held currency exchanges, coin developers and exchange souks from across the globe have been exploring these digital payment platforms for the last five to six years.

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