- Bitcoin (BTC) should be backed by gold – Mark Mobius
- Blockchain could be hacked somewhere in the future – Mobius warns
- Paxos launches a gold-backed cryptocurrency
Bitcoin News Today – Mark Mobius recently suggested that for cryptocurrency to have an intrinsic value, it must be backed by gold. Mobius – a fund manager and founder of Mobius Capital – gave this suggestion during an interview with Joe Kerner of CNBC. Coincidentally, Paxos announced the launch of its digital currency backed by gold on the same day. Mobius was cynical about the whole blockchain system standing on its own. In a statement, he said:
“If there is a digital currency that is really backed by gold – and that is, there is a meaningful agreement and some kind of modern thing of this connection – then this could be quite interesting.”
Bitcoin (BTC) Price Today – BTC / USD
Mobius Warns Blockchain Could Be Hacked in the Future
The fund manager also warned enthusiasts and investors that blockchain could also be hacked in the future. Bitcoin (BTC) and other digital currencies would then encounter an existential crisis. However, until that event unfolds, trust in the largest crypto by market cap seems to be growing at an enormous pace. Kerner also said that since there is no fiat currency backed by gold, then it should be extended to Bitcoin (BTC).
Paxos Launches a Gold-Backed Digital Currency
On the day of the interview with Mobius, Paxos announced the launch of a regulated digital currency backed by gold. The digital currency will be available by the end of this month. Paxos is a financial services firm aimed at closing the gap between digital currencies and traditional assets. Paxos is formerly known as iBit Company. The firm is in charge of the iBit exchange that offers an online portal for trading digital currencies. The new crypto – PAX GOLD – will represent “one fine troy ounce of London Good Delivery gold stored in vault facilities in London. In an interview, Charles Cascarilla – the Co-Founder and CEO of Paxos – said:
“If you come to us and you buy one ounce of gold, you send $1,500 of Paxos tokens, and we give you one ounce. That ounce is an actual legal title to an ounce of gold of a bar in a vault in London.”
The statements of the CEO were inspired by the criticism that the financial gold market is encountering. Gold, future, and exchange-traded funds that are not allocated to anyone are synthetic representations. The firm has also secured trust charter from the New York State Department of Financial Services (NYDFS). The NYDFS is one of the world’s most stringent regulators. The regulators have also approved a stablecoin backed by the USD – BUSD that is developed by Paxos and Binance.