New German digital currency XNF is backed by gold and silver
NoFiatCoin (XNF) is a new digital currency that is backed by gold and silver coins. This idea gives the currency an added security with the value of precious metals, according to VentureBeat.
Around a third of each XNF batch released into the market is backed by coins made of gold and silver. The deals are conducted through open payment system Ripple. Customers create a Ripple wallet and purchase XNF using US dollars via BitStamp. They can also trade Bitcoins for XNF via Ripple. In the event that they want to cash out, the company will mail them the value in coins, the report detailed.
Founder Robert Reyes explained: "Unlike other alt coins, we redeem our own balances - you can come in-and-out of the digital currency world with hard assets. If everything else collapses, precious metals will still have value, which is why we are different. You are always going to have a tangible asset at the end of the day with us, you can't say same of Bitcoin."
In 1996, E-gold emerged as a method of instantly transferring gold ownership. However, it was suspended in 2009 because of legal problems. XNF wants to become a more modern and trustworthy version of E-gold. The company is presently based in Germany instead of US because of the European country's more flexible regulations, VentureBeat reported.