Important Notice on BullionCoin following its launch on 15 August:
BullionCoin and the Allocated Bullion Exchange have been collaborating closely with each other until it's launch in order to deliver a gold & silver backed digital currency.
However, a few minutes after BullionCoin's website went live, the ABX issued a statement announcing it was withdrawing from its collaboration with BullionCoin citing several reasons.
You can read ABX's full statement here. You can read BullionCoin's reply to ABX's statement here.
Whilst this unfolds, I am going to treat the information as objectively as I can, and so should you.
I strongly suspect it may well turn out to be a storm in a tea cup and not actually be anywhere near as drastic as it sounds, and BullionCoin could well become the digital currency we all want it to be.
Things like this often happen in business and it should not reflect poorly on either party as they both have a great product.
I have spoken to Thomas Koenye, the co-founder of BullionCoin, and it looks like ABX's statement may have been unfairly issued and there are some areas that need clarification which I have added as a pre-face to ABX's statement. Thomas' reply is here.
However, as my primary and overriding concern is the safety and security of client and potential client money and their vaulted precious metals, I will always take the options and decisions that will not expose you to any risks. I will update you as soon as I have completed my due diligence on this matter.
If you have any questions about this then please do contact me and I'll be happy to help. You can also contact BullionCoin and ABX for further clarification from them.
David Gibson, Managing Director
Accepting Money Currently Costs Your Business
Whether you are a high street food shop or an internet based business, it's normal for the merchant processing network (banks & card services), to charge you on average between 2-4% of the value of each payment you accept. Some charge you a lot more.
Accepting and processing electronic payments has always been a costly action to do. The banks & card companies know you are a captive audience and they'll take as much from you as they think they can get away with, because they know you have little choice.
Well, they do give you a choice:
- Stop accepting all forms of electronic payment by turning away any potential client that wants to buy from you using a credit/debit card, App or any other online means
…and that's not a realistic choice!
BullionCoin Merchants Get Paid to Accept Physical Gold & Silver Bullion as Currency
Each BullionCoin transaction has a fee charged to the buyer. That fee is shared with you as way to thank you for taking the payment in BullionCoins.
- Transactions that are performed peer to peer are charged a fee of 0.25% of the value.
- Transactions that are performed through a BullionCoin Merchant have the above standard 0.25% + an extra 0.33% to make a total fee of 0.58% of the value.
That extra 0.33% is given to YOU, the BullionCoin Merchant, for free, to reward you for accepting payment in this digital currency.
That extra and free pure profit revenue is instantly added to your BullionCoin Wallet.
So by using BullionCoin's Payment App, not only have you decreased your processing costs by 2-4%, you also increased your profit by an extra 0.33% of the value of the transaction.
But My Suppliers & Employees Don't Accept BullionCoin
This will be true for many businesses…at the moment.
However, physical gold & silver is highly sought after by many many people all around the world. Especially in Asia, Middle East and Africa, with a quickly growing movement in Europe and North America.
If you need to sell your accumulated gold & silver to another investor on the BCX exchange, you will get it done quickly and at a great price. You will find no problem liquidating your stored physical precious into fiat currency with which you can make your payments.
Also, don't forget the bonus of your account having a larger balance then you otherwise would have had, based on the 2-4% cost saving and extra 0.33% reward payment income.
As your supply chain will be just as interested in increasing their bottom line as you – why not get them to accept BullionCoin too? They will make cost savings and they will also get the bonus reward income for being a merchant of their goods and services.
Maintaining Your Money Outside the Banking System
As a BullionCoin Merchant, you will build up a profit reserve that is vaulted physical gold & silver outside of the banking system. It is not a paper currency that the banks can take (read about us living through the Cyprus Bank Bail-in).
We witnessed first-hand how businesses stopped operating because they had no cash flow during the surprise Cypriot bank holiday. After the banks reopened (one didn't), many businesses found they were left with not enough money in their accounts to pay their bills or employees. A lot of those companies simply never opened their doors again.
Take steps to ensure that your business cannot be put in that position. Don't take the attitude that it'll never happen to you, because that's exactly the same attitude Cypriot business had too!
As a BullionCoin Merchant, you maintain liquidity and money outside of the banking system and there is no better way to do it then accepting BullionCoins. By doing this, your operation will still have a way to accept & send money in the form of physical gold & silver and you will be the envy of every business around you.