Published: 2019.09.24. Gold-backed cryptocurrency to appear in UAE

Gold-backed cryptocurrency to appear in UAE - Preview

The company from the UAE, “The Golden M Group”, is ready to launch by the end of the current 2019 cryptocurrency secured by gold, called “Coin M”, which will also comply with Sharia standards.

A company representative said that Coin M will be the first of its kind digital currency in the Middle East, which will be provided with gold, and operate on the basis of blockchain technology.

“The minimum investment amount in the new cryptocurrency is $ 100, which means that Coin M will become available to investors with various income levels,” company representatives say.

By providing a physical, real asset, the new cryptocurrency is less prone to price volatility compared to first-generation cryptocurrencies. According to CoinSchedule, the UAE is becoming the world leader in the sale of digital tokens, since they account for more than a quarter of all funds raised for new digital currencies this year until early April.

The volume of token sales in the UAE exceeded $ 210 million, which means that the long-standing leader in this market - the United States - fell to second place, thereby confirming the growing popularity of cryptocurrencies in the Middle East.

Due to the popularity of cryptocurrencies secured by gold, a number of questions arise. The first of them - if the price of such tokens changes in the same way that the gold exchange rate changes, then what makes them more attractive than the same gold exchange futures? Then, what should non-Arab token buyers do? Coming for your gold in the UAE? But how to import it into the same Russia, if everything that is more than 10 thousand euros is taxed at the border with a duty of 30% (investment coins, bullion)? In a word, there are more questions than answers so far.