A while ago, the UK Royal Mint announced that it was making plans to create a cryptocurrency asset that will serve as a physical representation for gold holdings. However, according to the reports from Reuters on Thursday, the company has decided to freeze its plans due to the current market conditions. This conclusion was rather discouraging to the cryptocurrency community but it isn’t a surprise because Royal Mint’s plan to create the RMG tokens in partnership with CME Group was vetoed by the UK government last year.
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A spokesperson for Royal Mint made a comment confirming that the token (RMG) will be launched eventually but not yet. The project may be resumed at a later date that was not mentioned. In a private email to CoinDesk, the spokesperson said:
“For years now, Royal Mint has been developing a digital gold token called RMG. This token was to be launched this spring. Unfortunately, the current market conditions are not favorable for this launch. However, we are going to revisit the project at a later date”.
The RMG token was initially to be released in the fall of 2017. However, the partnership with CME didn’t click at the time. CME was supposed to provide a platform for Royal Mint to trade this token. The British finance ministry reportedly blocked the move while they company struggled to look for another exchange to partner with. The RMG token was rescheduled to be released in spring this year. Unfortunately, the plans have been canceled once again.
The RMG token was expected to be used for the management of small quantities of gold. This way, investors will be able to penetrate the gold market. It was going to increase liquidity. The company also believed that the blockchain will be used to track gold and make gold provenance more efficient. It was also expected to support global trades.
BitGo, had plans to build several digital wallets that would be used for storing the RMG token. Civic, on the other hand, was going to offer KYC services for RMG. Unfortunately, these plans have all been put on hold indefinitely.