Gold Positioned to Succeed as a Digital Asset, Says Precious Metal Executive

Wed Aug 30 2023

In an interview with Kitco News, Randy Smallwood, CEO of Wheaton Precious Metals and Chair of the World Gold Council, highlighted the potential for gold to become an accepted digital asset. While the cryptocurrency market continues to struggle with global adoption, Smallwood believes that gold’s rarity and established value make it an attractive option for investors, especially in times of uncertainty and volatility.

Smallwood acknowledged that the digital coin sector has become oversaturated, with tens of thousands of coins in the marketplace, many of which have failed. He contrasted this with gold, which has maintained its value and global store of value status. He further commented on Bitcoin’s lackluster performance, suggesting that it could create an opportunity for gold to shine in the digital marketplace.

The World Gold Council has seen significant interest from banks worldwide in digitizing physical gold. Smallwood emphasized the need for a gold-backed digital token that represents physical gold and can be freely traded. He mentioned the potential of the blockchain in providing a secure and transparent platform for such digital gold currencies.

The World Gold Council is actively working on developing gold’s digital infrastructure through its Gold247 initiative, which aims to bring potential partners together in this space.

Smallwood also discussed the role of gold in the global currency market. While there are efforts to challenge the U.S. dollar as the world’s reserve currency, Smallwood highlighted that countries like China are continuing to build up their gold reserves to back their currencies. He emphasized that a currency wanting to compete with the U.S. dollar must have strong gold backing.

In conclusion, Smallwood believes that gold’s established value and rarity, along with the growing interest in digitizing physical gold, position it as a potential digital asset with significant advantages over other cryptocurrencies.

Source: https://www.claytoncountyregister.com