The plans to launch a gold digital token has been suspended by the Royal Mint, after the government prevented its attempt to list the said asset on a cryptocurrency exchange.
Royal Mint Gold (RMG) was originally floated as a project to place digital tokens. It is similar to a gold-backed cryptocurrency that is worth up to £1 billion on a trading platform run by CME that is based in the United States of America in 2016.
While the launch was initially set for mid-2017, CME later pulled out of the said project at the end of last year. Three sources who are close to the matter informed Reuters that the Mint later then turned to a cryptocurrency exchange in order to list the tokens, however, the government of the United Kingdom stopped the plan last February since it said that it was going to be too big of a gamble.
Also according to sources that were cited in Reuters, the British finance ministry refused to grant the approval of the 1,100-year old Mint’s plans to issue as much as $1 billion worth of “Royal Mint Gold” (RMG) tokens, which would have been backed by gold assets that are stored in the government-owned Mint’s vaults.
The Royal Mint could not be contacted to issue a comment regarding the reports.
Some experts said that the said project would have been the first time that a government of a developed economy had chosen to engaged in collaborating with a cryptocurrency exchange, as various fintech startups and other mints try to disrupt the space.
Perth Mint of Australia and the Royal Canadian Mint are two of such bodies which have launched digital gold products in 2018 with the use of technology that are supplied by fintech startups.
Glint, a startup that is based in London allows its users to spend and save in physical gold. It is set to expand its offering with launches in Japan and the United States of America before the end of the year.