UK regulator prepares framework for tokenised gold

[Oshosondy]

This is from the UK government because it is the UK regulators that want this to happen and they are already discussing the possibility for this to happen with the UK banks.

They want to compete with China which is very good.

I think digital gold can help UK sell more gold to the world is their plan.

https://www.ft.com/content/9973f186-5834-4b66-8faa-e8b2e8711466?syn-25a6b1a6=1

But there is something about this, centralization.

[o48o]

This is from the UK government because it is the UK regulators that want this to happen and they are already discussing the possibility for this to happen with the UK banks.

They want to compete with China which is very good.

I think digital gold can help UK sell more gold to the world is their plan.

https://www.ft.com/content/9973f186-5834-4b66-8faa-e8b2e8711466?syn-25a6b1a6=1

But there is something about this, centralization.

Tokenised gold involves creating digital tokens that represent ownership rights in physical gold. Gold bars are held by the issuer as a backing asset for the tokens.

So this has nothing to do with altcoins or permissionless tokens, because you can't legally transfer this sort of contract without KYC and ability to reverse transaction. No matter what sort of bill they would be forging.

I am highly skeptical that anything crypto related would come out of this, and at best it's just another synthetic masquerading as a real thing.

[Orpichukwu]

For those who might not have paid subscription to read through financial time news; you can access same news here UK FCA prepares tokenized gold framework with major banks

I am highly skeptical that anything crypto related would come out of this, and at best it's just another synthetic masquerading as a real thing.

What difference is it going to be from the already existing tokenised gold like XAUT, KAU, and PAXG? It’s just going to be another crypto pegged with a real-life physical asset; you can still move it after purchase from an exchange down to a wallet of your choice depending on the network which it's released on.

It's going to be centralised just like stablecoins out there, which gives them the power to freeze the asset while under the holder's possession. Many altcoins fall under the same category, and the tokenised gold is not going to be less.

[MArsland]

This is from the UK government because it is the UK regulators that want this to happen and they are already discussing the possibility for this to happen with the UK banks.

They want to compete with China which is very good.

I think digital gold can help UK sell more gold to the world is their plan.

https://www.ft.com/content/9973f186-5834-4b66-8faa-e8b2e8711466?syn-25a6b1a6=1

But there is something about this, centralization.

No wonder the UK wants gold tokenized because of the UK as a world gold trading center, so the Bank of England needs to expand as well as maintain its relevance in the market. The UK's move is quite appropriate in the midst of digital asset competition, so it needs to first place the gold trading infrastructure in the future. On the other hand, China is more focused on strategies to strengthen its financial and monetary strength.

[Oshosondy]

What difference is it going to be from the already existing tokenised gold like XAUT, KAU, and PAXG? It’s just going to be another crypto pegged with a real-life physical asset; you can still move it after purchase from an exchange down to a wallet of your choice depending on the network which it's released on.

It's going to be centralised just like stablecoins out there, which gives them the power to freeze the asset while under the holder's possession. Many altcoins fall under the same category, and the tokenised gold is not going to be less.

I am not sure, but what this can only mean is that it will be like PAXG, XAUT and other ones, but it will be controlled by the UK government and regulators. It will be very centralized, but other tokenized gold like PAXG and XAUT are very centralized to the point that they can be seized on noncustodial wallets.

[retreat]

The idea isn't much different from the gold-backed tokens already on the market. It's just that this is an initiative by the FCA in collaboration with various parties. In short, this is primarily in the interest of the British government to ensure that their market products remain competitive and can generate economic benefits for them, especially given their massive gold trading market. However, since this involves asset tokenization and is launched by a centralized platform, it merely represents the price of gold rather than granting users direct ownership of the gold itself. If it were me, I'd still prefer to own physical gold bars directly.