Monday, April 16, 2018

Diamonds in the crypto rough: Dubai getting into the cryptocurrency market with a diamond backed token

Stablecoins, or cryptocurrencies backed by a physical commodity, are exploding across the crypto sector.  In fact commodity backed cryptos are even enticing sovereign governments to enter into this arena as seen with Venezuela through their Petro oil backed token.

And now on April 16 we can possibly add the Ruling family of Dubai as a joint venture is forming to create a diamond backed cryptocurrency.

A joint venture claimed to be supported by a member of Dubai’s ruling family has launched three cryptocurrency assets backed by diamonds. 
Al Kasir Group, which says it is part of a joint venture under the private office of HH Sheikh Ahmed Bin Obaid Al Maktoum, said its new diamond trading model uses the digital ledger technology behind bitcoin, blockchain. 
The firm’s director Amit Lakhanpal said its offering was different to other cryptocurrencies seen as “objects of radical speculation and high volatility” with “potentially huge price corrections”. 
“Most cryptocurrencies are practically a poor store of value and means of barter-like exchange. This gives rise to a need for a more secure alternative,” he said. 
The three assets it is offering – Al Mas, Al Haqeek and Al Falah – are claimed to be backed by Indian Gemological Institute (IGI) certified real diamonds and therefore “better capable to store and translate value”. 
Al Kasir, which has a jewellery trading division and online portal, said as a pre initial crypto asset offering (ICAO) announced it would be selling the three products on its online store with pricing packages from $250 to $250,000. 
Against these products the company said customers would be given IGI certified diamonds of the same value after the completion of the ICAO. – Gulf Business
Diamonds are one of the world's most liquid and stable assets, and act very much as a store of wealth for individuals who don't want to have to deal with government intrusion into their financial dealings.  And when you add in the potential of cryptocurrencies to this mix, you accomplish the duo protections of both price stability and anonymity. 

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