Published On: Thu, May 11th, 2017

World’s first gold backed digital currency launched in Dubai


first gold backed digital currencyMr. Ibrahim Mohammed, the CEO of OneGram, a Dubai technology firm, informed about the launch of world’s first gold backed digital currency which is expected to raise $500 million in capital initially.

Considering the current spot price of gold, a 12.44 million tokens’ sell-out sale would bring in about $555 million.

Ibrahim added that the expected target capital – if reached would be the highest raised through initial coin sale. The coins are fully compliant with Islamic laws, making them the first of a kind. Called the OneGramCoin, the token is attributed as an Islamic financial product but the offering is open for all types of investors including non-Muslims.

The tokens will be sold from May 21 to September 22.

A gold trading company, GoldGuard has also teamed up with OneGram for token offering, each token is backed by 1 gram of gold kept inside a vault at Dubai Internationa Airport.

Blockchain technology is the latest trend in the financial and corporate world which enables to track and record assets across all industries. Same blockchain technology has been used to develop OneGramCoin, it also has powered similar currencies such as bitcoin.

Almost 50 per cent of the offerings has been committed according to the CEO, Ibrahim. One of Dubai’s largest investment bank, Tabarak Investment Bank will sell 100 million euros to its clients. Around seven high networth individuals in OneGram’s network are also expected to take up similar amount as Tabark Investment Bank.

According to Inrahim Mohammed, the premium objective for the token is to create a payments solution around it. The initiative is to create a merchant service program and free tokens will be offered to retailers. As a retailer – paying with Visa or Mastercard one has to pay 2.5 per cent, whereas this payment getaway will be for free, the retailers will be accepting OneGramCoin as payment, along with bitcoin and two or three of the top coins.

PricewaterhouseCoopers data has revealed that Islamic finance assets total about $1.2 trillion and account for only 1.2 per cent of global banking assets. However, this year the Islamic finance industry is expected to raise more than double and reach $2.6 trillion.

Mr. Ibrahim Mohammed also admitted to the shortage of Islamic products and said that despite being a big market the innovation has been limited.

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- An enthusiast working in Dubai as an Assistant Operations Manager. Writing about Pakistan and the latest happenings, trends around the globe is my passion. A dreamer, learner and a major foodie.