BullionCoin: The New Gold Standard

The BullionCoin digital currency is in the final stages of implementing its infrastructure and will be launched soon. The level of its regulatory compliance meets highest standards of global financial regulation with Know Your Client and Anti-Money Laundering policies, making it the most legally robust digital currency to exist (none of the cryptocurrencies will be able to match it).

Launch date for the BCX is expected around June 2018 to start creating the liquidity base, and the BCN will be launching around August 2018.

BullionCoin changes the meaning of currency from fiat to one that hasn't existed for nearly a century; fully backed & redeemable. It is not a cryptocurrency, but a digital currency that is 100% backed by vaulted allocated physical precious metals. Each BullionCoin represents an electronic Title of Ownership to the stored gold and silver behind it, which you can withdraw any time you wish. Investors are able to trade these Bearer Titles (coins) with anyone else, including retail businesses, in the same way that all existing currencies are.

Physical Precious Metals that Generate a Yield

BullionCoin will be historic because never before has physical gold and silver bullion ever produced a yield. The entire infrastructure behind this is fully regulated to ensure that banks and investment companies worldwide are able to be involved in this new low risk, but high yield bearing asset class.

A Digital Currency Fully Backed by Physical Gold & Silver Bullion

Whether you think you know about cryptocurrencies or not, it's important to understand what separates BullionCoin from them. This is a digital currency, different and new.

BullionCoin has been carefully designed to be compatible with the monetary needs of the global financial markets, companies and private individuals. The central design tenet is that it fully backed by physical gold and silver bullion. Gold & silver has been used as money and as a means of storing value for over 5000 years. Over those millennia, no other asset has been able to similarly provide the necessary characteristics to match them.

BullionCoin and Noor Capital have both set out to unite the physical precious metals and global financial markets by using digital blockchain technologies. Together they have created a seamless and fully integrated trading platform that allows participants to access both of their exchanges.

This extremely well engineered technological solution, will deliver accessible liquidity and stability into the global economy that is also intertwined with very low counterparty risk on a level never seen before, whilst not being able to be debased.

This is a new digital asset that is going to be widely adopted by large mainstream international financial institutions, companies and individuals alike, unlike all of the other purely mathematically created cryptocurrencies.

BullionCoin is purchased into existence in the Primary Marketplace and traded within the Secondary Marketplace. It is fully tradable, exchangeable, transferable, and redeemable. It is a true transactional currency that also serves as a store of wealth, meaning it is both currency and money.

Backed by vaulted 100% physical gold and silver bullion on a fully allocated basis

BullionCoin's Mission:

"To launch BullionCoin as the world's leading honest Digital Currency, 100% backed by gold and silver which are impossible to debase or devalue; fully exchangeable with other fiat and alternative currencies, where both gold and silver become earning assets using suitably structured incentive schemes."

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Types of BullionCoin

There are going to be 2 types of digital coins representing the two different BullionCoin asset classes of gold and silver. Each digital gold coin will represent 1 gram of vaulted 999.9 gold, and each digital silver coin will represent 50 grams of vaulted 99.5 silver.

XAAU at 1 gram of Fine Gold

Front and back of a 1 gram BullionCoin

XAAG at 50 grams of Fine Silver

Front and back of a silver 50 gram BullionCoin

Redeem Your Digital Currency as Physical Metal

All holders of this digital currency are able to redeem them back into physical precious metals. However, you need to hold a minimum of 1 whole BullionCoin to do so.

The metal sizes sent to you will be dictated by the quantity of the bullion being withdrawn and the most cost effective way to securely send it to you.

Gold withdrawals will be made up of:

Silver withdrawals will be made up of:

  • 50 gram coins
  • 1 kilo bars
  • 5 kilo bars

At this time you aren't able to specify what size bars you want to be delivered to you.

Pricing

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Each coin represents physical grams of gold or silver, the base value of the coin will not drop below the spot price for allocated physical gold or silver. The coin's inherent stability is derived from being directly linked to a fixed, measurable and known physical quantity of precious metals.

In the incredible event that it does drop below the physical spot price, then you are presented with an enviable opportunity to buy physical gold and silver at a discounted price! However, I can't envisage a scenario where this might happen because market forces wouldn't allow it (we can only wish).

The Exchanges

To help facilitate liquidity, monetary velocity, institutional uptake and trading two exchanges dedicated to the creation and trading of this digital currency have been created:

BullionCoin Exchange (BCX)
Institutions & Investors

The BCX primary marketplace is the where physical bullion is bought & traded in wholesale quantities and then used to create digital precious metals coins which can then either be sold to other primary market participants or into the secondary market.

To access this market and buy the relevant physical precious metals contracts, you will need to open an account which will be made available at launch.

BullionCoin Network (BCN)
Users & Merchants

The BCN secondary marketplace is where this digital currency is sold into to be traded or transacted by companies, merchants & individuals. Use BullionCoins for everyday transactions or to secure your money in a safe & stable liquid asset.

Once launched you will be able to open a BullionCoin Wallet and download the Apps to make purchases, transfers or become a merchant.

A Simple Summary of How It All Works

The following is a simple overview of the whole process:

  1. BCX participants buy physical precious metals at the wholesale contract rates & hold Title of Ownership to it.
  2. Those participants then convert their precious metals holdings into BullionCoins.
  3. Minting / creating BullionCoins is just a process of digitisation of the Title of Ownership to that metal.
  4. BCX participants then sell those digital coins into the BCN.
  5. The BCX investor gets their capital back plus a possible small retail profit on the sale.
  6. The digital coins that the BCN investors bought, act as an electronic Bearer's Title to the physical gold & silver that's backing it. They are the new owners of the vaulted metal.
  7. Coin holders can use them in transactions and trades, in the same way that you use fiat currency.
  8. As the coins are electronic Bearer's Titles to the physical precious metals backing them, investors holding those coins can then redeem them at any time in exchange for the equivalent quantity of physical gold & silver that those coins represent.
  9. The BCX investors will get a  portion of the transaction fees, whenever their specific coins are used. That payment is in BullionCoins (i.e. physical bullion) and will continue for the lifetime the coins they created remain in circulation.
BullionCoin Exchange Network Life Cycle

Investors

Asset Managers and investors can use both markets to their advantage. You are able to generate a perpetual yield that is linked to the coins you create in the primary market, which you then sell into secondary market. for short-term / overnight parking of capital in a stable & liquid asset.

This digital currency has been designed for typical currency transactions and short-term holdings via the BCS secondary retail market. This makes it ideal for short-term / overnight parking of capital for Asset Managers looking for a stable and liquid asset that has very low counterparty risk.

If you want to buy and hold physical precious metals to hold on a long-term basis for wealth protection, you should use our physical bullion accounts instead. Consider opening an account for each, so you can store your savings in precious metals with Noor Capital at the DMCC Brinks operated vault, and whenever you need extra currency for your transactions, all you have to do is to transfer some of your stored metal to the BCX in order to mint some more coins.

Transferring Your Existing Physical Precious Metals Into BullionCoin

Contact us so we can discuss your existing physical gold and silver holdings.

Many people already hold and store physical gold and silver. If that applies to you, then consider adding it directly into BCX and turning its title of ownership into an electronic format to then use as a currency.

Why convert it back into the fiat currency you got out of, just to re-buy it again?

If you don't transfer your precious metals into BullionCoin and instead opt to cash out and transfer that instead, you will effectively suffering 3 sets of costs:

  1. The original buy cost/fee
  2. The sale cost/fee
  3. The re-purchase cost/fee

Plus you will lose money on the price gap between the buy and sell prices.

However, how it has been stored will dictate how easy you can transfer it into the BCX vault. This is because Digital Gold Ltd (the company behind BullionCoin) needs to ensure that all the precious metals it vaults and backing this digital currency are 100% authentic and not tampered with in anyway. Digital Gold Ltd will not expose any of its clients to the risk of counterfeit or fraud, so they always take the very secure, conservative approach when accepting your precious metals.

Furthermore, as your metal will need to be assayed (and possibly remelted) before being accepted, these transfers will be subject to minimum amounts to be a cost effective approach.

Please contact us to discuss further.

Changing the Way Money Exists

BullionCoin cryptocurrency fully backed by physical precious metalsThe New Gold Standard

There are two aspects to our present monetary system:

  1. A very old & inefficient system that is sustained and easily manipulated by the incumbent banking system
  2. Nascent but highly efficient financial technological solutions whose implementation is being driven by people that recognise the old banking system is broken and no longer offers value

People and companies have had enough of the old inefficient banking system and are revolting against it by actively seeking new ways to efficiently transact business and money.

This push back against the banking system is why the cryptocurrency / digital currency market has rapidly grown in market value in such a short space of time.

However, the growth of this new digital currency has been stunted by various design limitations and technological teething problems. Nearly everyone can see and understand its future place in the world as an integral part of our financial lives, but many are worried about suffering losses, whether due to software bugs, hacks and market volatility (and quite rightly so).

This is why for all its spectacular growth and potential benefits, the world's markets (worth quadrillions of US Dollars) are reluctant to use cryptocurrencies.

So how the problem is how to get around this impasse and what advantages & benefits does that bring to BullionCoin?

Safety and Low Volatility

Two important factors that many financial professional such as Asset Managers and investors look for in an asset, is its price volatility and its safety/risk.

Being an asset 100% backed by fully allocated vaulted physical precious metals, BullionCoin addresses both of these concerns.

Investors will have reduced risk and exposure to the eye-watering price volatility that plagues cryptocurrencies and Asset Managers are able to use the stability and safety that physical bullion brings to park money overnight in a deeply liquid currency that does not carry the high counterparty risks that are associated with bonds.

Its liquidity is made available through the built-in incentives for investors to constantly create liquidity. Other incentives are designed to generate a high velocity in the turnover of the currency, further ensuring liquidity. Liquidity and velocity are required for any currency to be seriously considered by the financial markets.

Financial Incentives for Everyone at All Levels to Use BullionCoin

The problem with anything new and old, is getting people to use it. To achieve this, then the incentive to get them to use it needs to either provide a solution to their problem or make their life easier and secondly, reward them for the effort of adopting it.

BullionCoin's advantages & benefits to everyone using it are multiple. Here's a small list:

  • Cannot be manipulated by banks, markets or investors
  • Near instantaneous international payments (about 4 seconds to lock into a blockchain ledger)
  • Very low transaction costs
  • No counter party risk
  • Immunity from bank holidays and financial crises
  • Price stability
  • Safety

No restrictions on how you can use your money or how much you're allowed to access

It also comes with financial incentives and rewards in the form of receiving a free income stream, forever!

That income stream/yield comes from the transaction fees charged to the buyer, which is divided up between the relevant participants (single level of distribution only):

  • Primary market participants are paid a portion of every transaction fee relating to the specific coins they created.

The primary participant's revenue is received forever!

Merchants and Retailers

Normally merchants have to pay the bank between 2-4% of the transaction value each time a card is used to pay them. In an attempt to tackle the traditional card payment structure, BullionCoin turns that cost on its head.

Merchants using the BCN network will instead be paid for every BullionCoin based transaction they process. The merchant will be paid 0.33% of the transaction value.

Merchants and retailers will for the first time be making a profit on their card transactions instead of having it as a cost centre. I suspect that this is a world first!

Why should businesses be forced to carry the cost of card payments and effectively subsidise the banks in that area? To find out more how this can help to create a profit for your business, then click here.

Furthermore, as an added benefit, merchants using this digital currency will be able to avoid the expensive costs associated with chargeback fraud.

Creating New Coins

The production of these gold and silver backed digital coins will not be capped. The amount of coins in circulation will be purely dependent upon the quantity of physical precious metals bought by investors and converted.

A cap will only serve to create an artificial marketplace and pricing. None of us want that as there are already far too many instances of manipulation and artificial pricing in markets around the world. It's about time that we had an asset that is priced purely by natural market forces!

This way the value of 1 coin is easily calculated and known, with no artificial premium added based on a fixed and finite supply. Traders, asset managers and institutions can therefore buy as little or as much as they want which, in-turn, dictates the supply of physical precious metals added to the BCX and BCS markets.

For anyone interested in minting / creating new coins, you will need to become a member of the primary (BCX) market. It is in the primary market where you'll be able to buy the physical bullion, delivered by refineries & mints, from which you then mint new digital coinage.

Investors wishing to participate in the primary market will need to apply for an account through GoldVu.

The BullionCoin Debit Card

BullionCoin Debit Card

The majority of users of will perform their transactions via the mobile or online payment applications.

However, as mobile payments still haven't been fully adopted worldwide, you are able to get a BullionCoin debit card and use it worldwide similar to the way you currently use Visa, MasterCard, American Express, etc. This will be initially given for free to high value accounts only, due to the cost of issuing the card. There may be a possibility that the cards could eventually be bought by people wanting to use this digital currency through a merchant system, but those costs haven't been confirmed yet.

It's unique in that you can use it for any local currency without having to first pre-sell your precious metals holding before using it. When payments are processed at the point of sale, the exchange rate for local currency vs allocated gold or silver is automatically calculated and the equivalent amount of bullion is debited from your e-wallet account.

No other 'physical precious metals' debit cards are directly linked in this way to their bullion account. Other providers need you to first sell your gold and silver, after which you then have to transfer/load the realised cash onto your card.

The BullionCoin card is a genuine revolution in physical bullion card payments.

Cryptocurrency Exchanges

Cryptocurrency exchanges are at the mercy of the high volatility found in the cryptocurrency markets. When digital currencies flash crash then liquidity is sucked out of the system.

It's not a situation that is conducive to their short-term survival or long-term market growth. BullionCoin brings a much needed and critical level of stability to these crypto exchanges.

It provides the investors a safe haven for their money in a volatile environment and prevents these exchanges from having their liquidity withdrawn which further seizes up the market and exacerbates the problem.

It is the final critical component that these exchanges are looking for to be able to start directly challenging the mainstream exchanges that use traditional fiat money. This will change the role and position of cryptocurrency exchanges.

With investors being able to access & reinvest into a stable digital asset, everyone wins.

Furthermore, participating crypto exchanges may well create their own Tertiary BullionCoin market whereby you will be able trade them for other cryptocurrencies like Bitcoin. You'll need to contact any participating crypto exchange to see if they have plans to offer that service.

Initial Coin Offering (ICO)

The company behind BullionCoin is Digital Gold Ltd. Digital Gold Ltd is registered as a Designated Business with the Financial Services Authority (FSA) of Isle of Man. You can search for any Isle of Man regulated company here.

There has been massive up-front private capital investment into the infrastructure behind this digital currency, which includes setting up all the regulated legal entities such as Trust companies for client assets, completely developing the BCX and BCN platforms and setting up all the supporting services such as vaults and liquidity providers (refineries).

As all investment into this has been already raised, then there is no need to do a public fund raising exercise such as an ICO.

With the entire launch being ICO free, it has none of the associated regulatory headaches that plague crypto and digital currencies.

This ensures that BullionCoin will be as regulatory compliant as possible and no less than any other mainstream financial product / asset on the market.

Anyone wishing further information about how to become a founding participant of this new digital asset, please contact us or sign up for our Newsletter. Open a Wallet so you can see your balance, your daily added earnings and download the mobile Apps.

Join one or all of our Social pages to keep up-to-date with important news & events, or just to learn & ask us questions about physical or digital precious metals. Use our registered hashtags #GetBullion or #BullionCoin when posting so that we can catch them:

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