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U.K. Government Squashes Royal Mint’s Plans to Launch Gold-backed Cryptocurrency

U.K. Government Squashes Royal Mint’s Plans to Launch Gold-backed Cryptocurrency

Reading Time: 2 minutes by on October 28, 2018 Altcoins, Finance, News, Platform, Regulation
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Britain’s Royal Mint, a wholly government-owned mint whose primary objective is to create gold and silver coins for the state, will not be launching its gold-backed cryptocurrency any time soon, as the U.K. authorities have kicked against it, reported Reuters on October 23, 2018.

Royal Mint’s Digital Gold Ambition Sees Significant Setback

As earlier reported by BTCManager in November 2016, Royal Mint Ltd partnered with the Chicago Mercantile Exchange (CME), as part of plans to create a gold-backed digital asset called Royal Mint Gold (RMG).

Initially scheduled to go live in late 2017, when the cryptocurrency market was experiencing a strong bullish rally that saw the price of bitcoin nearly kissing $20,000, the CME, however, pulled out of the deal at the very last minute, leaving the organization without an exchange.

“CME’s management changed, and they walked away, didn’t want to get involved,” one of the sources claimed.

Not giving up without a fight, the Royal Mint reportedly tried to ally with a cryptocurrency exchange, but Britain’s finance ministry refused to approve the deal stating categorically that the unregulated nature of the crypto space coupled with its volatility is too big a gamble.

And if things went wrong, the image of the government, as well as the Mint, could be damaged beyond repair.

End of the Road?

Fast forward to 2018 and the Royal Mint’s distributed ledger technology-powered digital gold project has hit a significant snag that could eventually lead to the death of the initiative as the U.K. government has kicked against the plan, three anonymous sources told Reuters.

Commenting on the development, representative of the Mint refuted all contradictory claims and had reportedly told Reuters that the Royal Mint would have launched its RMG token in spring this year, but the current bearish market trend has made it delay the process.

“Sadly, due to the market conditions this did not prove possible at this time, but we will still revisit this if and when market conditions are right,” the Mint concluded.

While the creation of a gold-backed altcoin by a highly reputed government-owned organization like the Royal Mint would have undoubtedly given the cryptocurrency markets a considerable boost, other blockchain-based startups have however gone ahead to explore the world of asset-backed altcoins.

Earlier in September 2018, reports emerged that Eidoo Multi cryptocurrency wallet launched its gold-backed stablecoin called Ekon.

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