The Swiss bank SEBA has launched a Regulated Digital Gold Token that entitles you to own physical gold
On December 15, SEBA Bank, a licensed Swiss banking platform for digital assets, launched an exchangeable regulated digital token backed by physical gold. SEBA said that due to its regulatory compliance and low volatility in gold prices, this token could eventually be used as a stablecoin for on-chain transactions.
In other words, the architecture of a gold token is similar to gold standards, where fiat currencies are backed by their ability to be exchanged for physical gold in addition to the trust of the governments that issue them. In 1971, US President Richard Nixon removed the dollar from the gold standard, which established that $ 35 could be exchanged for one ounce of gold under the 1944 Bretton Woods system.
Gold-backed currencies are known for their ability to eliminate hyperinflation. However, they also bring a flip side to the ongoing economic depression, as the ability of governments to print incentives is limited by the amount of gold. Currently, no country in the world operates by gold or silver standards.
“Gold can be redeemed directly from refineries upon request at any time; our gold token removes the difficulties of owning gold for investors and provides a cost-effective solution to owning an asset suitable for the new economy, ”said SEBA Bank CEO Guido Bühler.