Gold-Backed Digital Currency Based On Blockchain Technology

San Francisco CA

Description

Backed by Gold A digital currency can be based on blockchain and cryptocurrency technology. The DECP. How a digital currency can be backed by gold. The countries with the most gold. Now is the time for investors to acquire gold before the price rises further. When it is a question of how a national digital currency based on block chain and crypt-currency technology can be backed by gold, one can only speculate on how this could be implemented. Given the huge amount of fiat currency in circulation, it seems impossible that any country could resort to making the currency redeemable in gold bullion and have gold coins circulate. One possibility is simply that the country wants to have a large amount of gold in its reserves so that the digital currency gains credit and trust as Max Keiser has suggested. With the gold price already over $2,000.00 an ounce, there is simply no way that the amount of gold currently existing could cover the fiat money that has been issued. The USGS (United States Geological Survey) estimates that about 244,000 tons have been discovered to date with 187,000 tons produced and 57,000 tons in current underground reserves. Yearly gold production is between 2,500 to 3,000 tons. Most of this gold has been used for jewellery and industrial purposes. (How much gold has been found in the world?) The only way that any currency, fiat or digital, could be redeemable in gold is to have the gold price increase enormously. There are some pundits that have preconized a gold price of $10,000.00 an ounce or even $20,000.00 an ounce. That price would be far too low to be able to guarantee that the fiat currency, and that includes digital currency based on blockchain technology, could be redeemed in gold. Even a gram (there are 28 grams in one ounce) would then be extremely expensive to purchase. At the present time a gram of fine gold (0.9999) costs around $90 or a bit more. An ounce is going for around $2,050.00 at the time of writing. Assuming that the money supply even with a digital currency could be increased by central banks and that the amount of gold currently existing is finite or at best increasing only slowly, the price of gold would levitate in the currency of a particular country as the currency of a particular country is debased by its central bank increasing the money supply in that currency. In this way countries that increased their money supply in a gold-backed system would see their currency depreciate against gold. The US has benefited enormously from having the US dollar as the most important global reserve currency and can afford to have an annual trade deficit of $600B and still have a viable currency. Still more impressive is that US federal debt has become the standard global investment vehicle What is significant about Bitcoin is that it is a cryptocurrency and users can evade government supervision. Bitcoin is therefore a useful tool for money laundering. A national digital currency with blockchain technology that allowed the authorities to check on the wallet of the user of the app, on the other hand, would make it possible for the financial authorities of a country to check on all the purchases of all individuals. This is the sort of control that the CCP would like to have and explains the great interest of the PBoC in developing a national digital currency based on blockchain technology, namely, DECP, (Digital Electronic Currency Payment) along with cryptocurrency technology that does not allow the user to operate anonymously. An app for smart phones has been prepared to make payments via cell phone with the new national digital currency possible. Details are leaking out while the system is being tested in four major Chinese cities and four major Chinese banks are involved in the process as are Ten Cent and Alibaba. The DECP app can be downloaded to a smart phone. It should be noted that a huge number of Chinese already have smart phones and make payments via their smart phones. The number of smart phone users in China in 2020 is estimated to be 0.78 billion with 1.6 billion mobile phone subscriptions