The World Gold Council (WGC) is taking a bold step in the London gold market, and it could transform everything.
They’ve introduced a new proposal for a digital token called Pooled Gold Interest (PGI). This token acts as a digital substitute for actual, physical gold bars stored in London’s vaults. For the first time, traders can legally own a portion of a large 400-ounce bar without needing to buy the entire bar.
Mike Oswin, the WGC’s global head of market structure and innovation, states that the main goal is to make gold easier to use. Whether you’re investing in it or using it as collateral, the PGI token is designed to be simple.
Although gold is technically accepted as backing for loans and trades, it’s a big hassle to physically transport, so most people prefer bonds or cash.
The WGC aims to simplify gold pledging, making it as easy as any other digital asset. This could attract many new participants, especially with gold prices hitting record highs recently.
And with new players entering the market, they’ll need tools. Tools like Best Wallet and its native Best Wallet Token ($BEST) can become your all-in-one resource for everything crypto-related.
The WGC’s Global Ambitions
The WGC is launching in the UK, but they’re already exploring how the model could work in the U.S. and other major markets.
In a recent whitepaper, they outlined their long-term plan to expand well beyond London’s 930B market. This market, known as the Loco London market, handles a staggering 20 million ounces of gold traded daily.
The WGC believes the PGI token could completely change how all that volume is handled.
However, not everyone is convinced by the idea. Russ Mould, an investment director at AJ Bell, believes some traditional gold investors won’t even bother with this digital version. He suggests that WGC is just trying to keep up with the popularity of cryptocurrencies and stablecoins.
Mould mentioned in an interview with CNBC that many ‘gold bugs’, the true enthusiasts, love gold specifically because it’s a tangible asset that is
Go to Source to See Full Article
Author: Ben Wallis
