Could GGT Be First Token Used to Acquire Shares in Mines?
SINGAPORE, Nov. 15, 2018 /PRNewswire/ -- On November 15, 2018, the global gold industry blockchain alliance, Goldlinks, announced the conclusion of a strategic partnership with Erd Khul LLC, a gold mine in Mongolia. The partnership covers cooperation on mining, the creation of gold-backed digital assets, mine acquisitions, and more. The tie-up is the latest in a succession of important partnerships for Goldlinks, and indicates Erd Khul's enthusiasm for the synergies made possible by gold-backed digital currencies.
Erd Khul LLC is located in Zaamar District, Töv Province, Mongolia. The mine occupies a total area of 2,243.08 ha, has proven gold reserves of 50 tonnes, and a monthly output of 150 kg, expandable to over 500 kg. Recent data shows that Mongolia has proven gold reserves of approximately 3,100 tonnes. These are widely dispersed, with over 70 known deposits. Moreover, with the opening of several mines of varying sizes in recent years, Mongolia's gold production has been on an upward trajectory.
Joint issuance of GGC tokens
Recently, Goldlinks unveiled a gold-backed digital currency called Global Gold Cash (GGC) that runs on a blockchain and is backed by physical gold. Currently, 100 GGC is equal to one gram of physical gold of 99.9% purity. As an up-and-coming 'stablecoin' that is backed by gold, GGC recently found itself in the media spotlight after it became the world's first digital currency to be used in international trade settlement.
Under this new strategic partnership, Erd Khul expressed its approval of Goldlinks' philosophy and vision and pledged to work together to digitize its 50 tonnes in gold reserves. This physical gold will be used by Goldlinks to back the issuance of GGC, helping to lend the tokens greater credibility.
In addition, Erd Khul agreed to accept payment in GCC from Goldlinks users for products and services provided by the mine and its subsidiaries. This offers a compelling usage case for the currency as a medium of exchange in commercial applications.
The agreement also calls for the establishment of a joint digital currency investment fund that will invest in high-quality digital currency projects worldwide to promote the digitization of gold by mine owners. Backed by physical reserves, future production, and mining rights, gold-backed blockchain tokens are expected to have a profound impact on the world's financial, blockchain, and digital currency sectors.
GGT poised to become first token used to acquire shares in mines
Also of note is that Erd Khul may allow users to trade Global Gold Token (GGT), a gold community digital currency issued by Goldlinks, in exchange for shares in its gold mine. This could make GGT the world's first digital currency that can be used to acquire a mining stake.
GGT is a utility token issued to community members by Goldlinks that records member rights, including the right to buy gold at a discount, invest in gold mines, vote on projects, and reap the rewards of the Goldlinks business ecosystem. At the time of going to press, one GGT token was trading at around 1.21 USDT on BitForex.
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