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SEBA Bank launches regulated gold token to enable digital ownership of physical gold

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SEBA Bank, a licenced Swiss digital assets banking platform, announced the debut of a regulated digital token backed by physical gold that can be exchangeable for delivery on Wednesday. The gold token, according to SEBA, might someday be usable as a stablecoin for on-chain transactions due to its regulatory-compliant nature and the low volatility of gold prices.

In other words, the gold token’s design is reminiscent of gold standards. In which fiat currencies backed by their exchangeability with physical gold. As well as faith in the governments that issue them. President Richard Nixon of the United States removed the dollar from the gold standard in 1971. When it was established that every $35 in dollars may be exchangeable for one ounce of gold under the 1944 Bretton Woods system.

Gold-backed currencies known for their capacity to prevent hyperinflation, which is a prevalent concern among cryptocurrency investors. They do, however, have the drawback of prolonging economic downturns, as gold’s availability limits governments’ ability to create stimulus. At this time, no country in the world uses gold or silver as a currency.

In a statement, Buehler described the development:

“Our gold token eliminates the frictions of holding gold for investors. By providing a cost-effective option for owning the asset suited for purpose in the new economy.”

SEBA has previously developed a service that allowed consumers to earn cryptocurrency dividends. It is the country’s first bank to grant a digital custody licence.

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