The British Royal mint abandoned the idea of launching a “gold” token (Royal Mint Gold) after ceased cooperation with the Chicago Mercantile exchange (CME), and the government vetoed the idea of trading tokens in the selected as an alternative cryptocurrency platform. This was reported by Reuters, citing three insiders.
The collapse of the Royal Mint Gold (RMG) due to the position of the authorities, who did not want contact with the world of cryptocurrency. According to analysts and traders, if the idea was implemented, they would create a precedent of direct cooperation developed economy with cryptocurrency exchange.
In 2016, the Royal mint, which has a history of 1,100 years, has announced plans to release tokens with a total value of up to $1 billion in cooperation with CME. The aim of the project was to give investors a simple and convenient way to purchase physical gold stored in the Treasury, and the subsequent trade in precious metal.
Token Royal Mint Gold had originally planned to launch in the fall of 2017, but at the last minute CME refused to participate in the project, depriving the mint of the marketplace. One of the Reuters sources explained this step the fact that “the leadership has changed CME”.
According to the same sources, when at the beginning of 2018, the mint wanted to save the project, having signed an agreement with a cryptocurrency exchange, the British Ministry of Finance has refused to give permission, seeing in this Alliance the potential reputational costs for the government and owned by the mint. After this, the new head of the mint, Ann Jessop, appointed in February 2018, has decided to close the project, who left no less than ten leading employees.
Representatives of the mint told Reuters that the issue of “digital gold” was supposed to start this spring, and added:
Unfortunately, because of the current state of the market plans were upset, but we will revisit this issue if and when the market situation allows.
A press-the Secretary of the Treasury suggested that the Reuters reporter to seek review in mint. For its part, the representatives of CME stated that “continue to work with partners to assess the degree of demand and are unable to tell us anything new.”
In the UK there is no normative-legal basis of circulation of cryptocurrency. The Minister of Finance, the Central Bank and financial regulator of the country trying to figure out whether the cryptocurrency relevant laws, as well as relevant whether blockchain technology in the financial sector.
Meanwhile, other countries are already launching similar products. So, Perth mint Australia and Royal canadian mint this year launched digital assets with collateral in the form of gold.