UK government freezes plans to launch a gold-backed cryptocurrency

25 Oct, 2018
by Richard Allen
News
UK government freezes plans to launch a gold-backed cryptocurrency

Britain’s Royal Mint has suspended plans to launch a “digital gold” token after a partnership with US exchange group CME fell through. Three sources have told Reuters that the government has subsequently vetoed a plan to have the tokens trade on an exchange.

The 1,100-year-old Mint first announced its plan to issue up to $1 billion worth of Royal Mint Gold (RMG) on blockchain-based trading platform run by CME in 2016, which would have allowed investors an opportunity to buy and trade physical gold the Mint held in reserve.

“Sadly, due to market conditions this did not prove possible at this time, but we will revisit this if and when market conditions are right,” said a Mint spokesperson.

Royal Mint Gold was scheduled for release in autumn last year, but CME pulled out at the last minute, leaving the mint without trading revenue, the sources have said. With the government withholding approval and the project being unable to move forward, it was shut down resulting in four staff members losing their jobs and a further 7-8 “made redundant.”

According to CCN, had the project made it to fruition, the token would have been one of the world’s most valuable cryptocurrencies, reportedly ranked just outside of the top 15, behind NEO and Ethereum Classic.

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