Wgc To Introduce Digital Gold

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Wgc To Introduce Digital Gold

Wgc Plans To Introduce Digital Gold

It seems that the World Gold Council (WGC) is now mulling over the idea of Digital Gold. If that turns into a reality, it would modernize the Gold market.

According to Commerzbank, the WGC is thinking about how and when to introduce digital Gold into the market. The PGIs will allow even small investors to own a share in physical gold.

Digital Gold Will Counter Stablecoins/Cbdc

In short, a pool of investors will be able to buy physical gold that's actually present inside a vault. The PGIs could also be used as collateral and will be transferable.

Overall, the digital Gold will have all the properties of the physical Gold. The only exception is that it would be digital, and the investors wouldn't have physical access to it.

This move by the WGC comes at a time when there are multiple stablecoins in the market and many central banks are also launching their own CBDCs.

Commerzbank commented that this move also appears to be motivated by the fear that CBDCs or stablecoins might affect Gold. But in reality, Gold has its own market, and there is no other asset that can easily replace it.

After all, the stablecoins are based on the fiat currency, and even the CBDCs are just the digital version of the fiat currencies. So, in a sense, it is just like cash but in digital form.

On the other hand, Gold has been politically free and isn't controlled by any single government or organization. The amount and the price of Gold mainly depend on the supply and demand.

But, the biggest benefit of Gold is that it has a limited supply, which makes it many times better than fiat currencies with an unlimited supply.

The bottom line is that digital gold will only further increase the appeal of Gold and will also push the prices to new highs.

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