AnthemGold Advances Cryptocurrency Mobile Payments With First Stablecoin Minting
With over 1,600 cryptocurrencies—and growing!—in the market today, it’s no surprise that we’ve seen this technology encompass just about every basis imaginable. Cryptocurrency now is built around human history, around certain communities, and even certain countries are throwing their collective hat in the ring. Now, AnthemGold is advancing the stablecoin concept with its minting of 1,000 AGLD stablecoins, a gold-backed cryptocurrency, and sent word our way about the release.
Stablecoins, for those not familiar, are a form of cryptocurrency that have a material backing. In AGLD’s case, that backing is one of the oldest and most familiar such backings around: gold. AnthemGold maintains a supply of gold in a Class III vault, which serves as the basis around its AGLD coin.
The reports from AnthemGold note that each 1,000 AGLD stablecoins are backed by one kilogram bar of .9999 fine gold. A little math here suggests that each AGLD coin represents one gram of gold, which is trading for $41.11 as of this writing. Word from AnthemGold’s website says that the price of each AGLD token will reflect the price of gold precisely using “up-to-the-second spot pricing of 24kt .9999 AU gold bullion”.
That, admittedly, will go a long way toward providing stability to this stablecoin. Even if gold prices do suddenly fluctuate substantially—a point that some suggest may be coming as the US dollar and similar fiat currencies worldwide experience significant destabilization risk—the price of gold and the price of AGLD will mesh up. AnthemGold even goes on to point out how its coin is more stable than many other stablecoins out there, including noting that just 77 percent of other stablecoins are backed by an actual asset—some are backed by other cryptocurrency—and around two thirds, just over 66 percent, are backed by the US dollar.
Stablecoins could represent a major sea change in using cryptocurrency as a mobile payments system. After all, a coin that holds its value as well as gold does is exactly the kind of thing merchants would want. Admittedly, the constant $41 or so value makes some purchases difficult—try buying a Snickers bar with a $50 on a regular basis and watch the guy at the corner gas station ask you to get out—but a crypto with stability does improve its options.