By Staff writer
Islamic financial services OneGram says plans to sell more than 12 million tokens could raise nearly $555m
OneGram, an Islamic financial services and technology company, is partnering with GoldGuard, which is building one of world’s largest gold vaults in Dubai, to create the world’s first completely gold-backed digital currency.
Each token will represent and be redeemable for one gram of gold, a statement said.
OneGram said in the statement that it has Sharia scholars on its board to ensure that it is fully compliant with Islamic finance requirements.
A maximum total of 12,400,786 OneGramCoin tokens (OGC) will be sold, making it the largest cryptocurrency crowdsale goal in history, it added.
At the current spot price of gold, a sold out crowdsale would raise nearly $555 million.
The Islamic finance sector is currently responsible for managing 1 percent of global GDP and is growing at nearly 20 percent per year, the statement said.
There are more than 2 billion Muslims worldwide and OneGram is seen as a Sharia-compliant method for them to keep gold in a digital format that is both secure and digitally transferable, including across borders, at the same time.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
This construct is nothing new. In fact, it represents a huge step back in time dating back to long abandoned monetary policies in the 18/19 hundreds in for example Holland: the central bank would issue banknotes representing Guilders (the word is derived from gold). For each bank note guilder of valid legal tender there was a Guilder's worth of physical gold stored in the vaults of the central bank. The bearer of the note could go to the central bank at any time and demand the actual gold in exchange for the banknote. This was the so called "Gold Standard". The only difference with the now launched "digital currency" is that the exchange of the currency takes place though the use of computers instead of from person to person. IMHO this is not real innovation but mostly smoke and mirrors to cash in and raise profile on the back of the fintech hype.
It is not going back anywhere. It is a corrective step where the currency is being some intrinsic value rather than how it is now where the paper has not value of its own. Also, with this digital currency, the ownership can be allocated to the real value of the money!