During the early part of the 20th Century, the currency was backed by gold reserves which allowed the person to redeem or trade the money for an equivalent amount of gold.
This is commonly known as the gold standard. This practice discontinued with most of the world during the Great Depression, based on several reasons but the most obvious being the weakened economy and people hoarding physical gold due to lack of confidence in their government. So what did governments do? It forced people to use the paper money it legally tendered. You can read about its history as currency in our previous post here.
This was pretty much the state of affairs for years until, of course, the government and its financial institutions failed the people again. Now with the invention of cryptocurrency through blockchain technology, combined with crypto’s continuing meteorite rise, and speculations of eventual mass adaptation – there have been endless comparisons to gold as an alternative asset investment. Few of the issues however are that the ongoing volatility, cost of transacting, and lack of liquidity within the cryptocurrency space prevents mainstream adoption as a method of exchange for daily transactions. This volatility has led to an increasing interest in asset backed solutions, which are generally designed to achieve stability through tethering the cryptocurrency (or token) to a tangible underlying asset, GOLD. But gold can be difficult to transact within today’s digital age.
This is where Meld Gold comes in.
Two of Meld Gold’s founding partners are Algorand and the Imperial Group. Algorand built the world’s first open source, permissionless, pure proof-of-stake blockchain protocol for the next generation of financial products. This blockchain, the Algorand protocol, is the brainchild of Turing Award-winning cryptographer Silvio Micali. (Quite frankly, he’s a genius.) What makes them different is that they use pure proof-of-stake and a ⅔ majority consensus, meaning that they solve the “Blockchain Trilemma” of effectively and being equal parts: decentralised, scalable and secure.
The Imperial Group is an independent collective of Australian brands specialising in all areas of the precious metals, numismatic and secure storage industries. Their core is buying and selling, recycling, and storing physical gold and silver. The Imperial Group alone will contribute to the Meld ecosystem; 6 retail locations (3 existing & 3 launching), 3 ecommerce sites, over $50M in existing gold trade, and over 20k+ current customers.
What does all of this mean to you?
To put it quite simply, we have the gold to back it up!
Meld Gold is empowered by a marketplace of gold suppliers, global brands and a network of specialist partners directly promoting and utilising Meld’s token, MCAU. Built with Algorand, the MCAU token is designed specifically to lower the barriers to transforming gold into a digitally connected, cryptographically secure stablecoin and is a truly decentralised ‘industry gold token’ with speed to scale. Consumers will be able to transact or redeem both physical gold and digital tokens with the network of participating partners, enabling them to reap the benefits of gold and take ownership of their wealth.
The MCAU token is now available for trading on BTC Markets for Australia, but as mentioned above, you can visit any of Imperial Group’s physical locations to transact with MCAU.