What is Digital Gold Currency (DGC)
Definition of Digital Gold Currency.
Digital Gold Currency is a form of electronic money based on ounces of gold. It is a kind of representative money, like a US paper Gold Certificate at the time that these were exchangeable for gold on demand. The typical unit of account for such currency is the gold gram or the troy ounce, although other units such as the gold dinar are sometimes used. DGCs are backed by gold through unallocated or allocated gold storage.
Digital Gold currencies are issued by a number of companies each of which provides a system that enables users to pay each other in units that hold the same value as gold bullion. These competing providers issue a type of independent currency.
Features of Digital Gold Currency
Universal Currency
Proponents claim that DGC offers a truly global and borderless world currency system which is independent of exchange rate variations and political manipulation. Gold, Silver, Platinum and Palladium each hace recognized international currency codes under ISO 4217.
Asset Protection
Unlike fractional reserve banking, Digital Gold Currency hold 100% of client fund in reserve as gold, silver and platinum which can be exchanged via digital certificates. Proponents of GDS system say that deposits are protected against inflation devalution and other economic risks inherent in flat currencies. These risks include the monetary policy of countries or territories, which are said by proponents to be harmful to the value of paper currency.
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