Home Altcoins Precious Metals-Backed Cryptocurrency To Be Launched By Swiss Firm Tiberius

Precious Metals-Backed Cryptocurrency To Be Launched By Swiss Firm Tiberius

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metals-backed cryptocurrency

Switzerland’s Tiberius Group AG, a commodities trader and asset manager, is to launch its own precious metals-backed cryptocurrency. The so-called Tiberius Coin will have its price pegged to seven of the world’s most valuable metals; copper, nickel, cobalt, tin, gold  platinum and aluminium. Whilst this idea is nothing new – having been tried and largely failed already in the form of Venezuela’s oil-backed Petro – it’s hoped that the value of the coin will be more stable than most given its relation to the price of numerous marketable commodities rather than just one.

The CEO of Tiberius Technology Venture AG, the development arm of the company heading up the launch, Giuseppe Rapallo explained that;

“Instead of underlying the digital currency with only one commodity, we have chosen a mix of technology metals, stability metals and electric vehicle metals”

Continuing on to assert that;

“This will give the coin diversification, making it more stable and attractive for investors.”

As the world’s first precious metals-backed cryptocurrency, Tiberius Coin will not be made available through an initial coin offering (ICO), as it will be sold only on request with its supply limit being entirely decided by the total global supply of the metals which underwrite it.

Trades using the coin will represent traditional bartering arrangements whereby a trader will be able to swap grams of metal (symbolised by the Tiberius Coin) for goods and services, all under the watchful eye of Swiss regulators. The coin will be available via Estonian exchange LATOKEN which complies with Swiss law and it’s hoped that the precious metals-backed cryptocurrency will appeal to more conservative crypto investors who may find the inclusion of seven physical assets reassuring.

With some sceptics labelling the issuance of coins backed by real-world commodities redundant, it will be interesting to see how well such projects fair in the market, especially when compared to their close relatives the fiat-pegged stablecoins.

 

 

Crypto newshound and blockchain democrat. Frequently asks, "cui bono?" and thinks you should too.

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