Thursday, December 21, 2017

Dubai real estate market shows that gold backed cryptos may be a better medium of exchange than Bitcoin

As we finish out the end of 2017, it can be said without a shadow of a doubt that this has indeed been the year of the cryptocurrency.  And while it appears that we are only beginning to see the use of cryptos move from the arena of speculation into that of mainstream finance and retail, perhaps the next question that will be debated is whether resource backed cryptocurrencies emerge as a better medium of exchange than those simply those backed by confidence and 'proof of work'.

But for now we can put a large checkmark on the side of the ledger for gold backed cryptocurrencies as Dubai's real estate market may prove itself out as a great test case for global support of resource backed cryptos in commerce.

Dubai-based company MAG Lifestyle Development is planning to allow customers to purchase properties using OneGram, a Sharia-compliant, gold-backed digital currency.
“At MAG, we exist to inspire our customers to expect more from us, and we are delivering on this promise by allowing them to benefit from the growing potential of cryptocurrencies with OneGram,” said Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development. “In Dubai’s forward-thinking real estate market, where embracing smart digital solutions is a key priority for driving sustainable growth in line with our leadership’s directives, we are proud to be standing apart from the pack by achieving another regional first.” 
OneGram uses blockchain technology to create a new kind of digital currency, where each coin is backed by one gram of gold. OneGram launched its initial coin offering (ICO) with just over 12.4 million OGC tokens on May 27. The first two days of the ICO crossed $1 million, according to the OGC team. The company partnered with Goldguard, a gold trading company licensed by Dubai Airport Free Zone (DAFZ). The gold will be held at a vault inside the Dubai International Airport. 
MAG said investors will buy OneGram to the value of the property and receive a five percent discount on the property price as a result. OneGram will then remit to MAG according to the payment plan, which is 35 percent over six to nine months and 65 percent on completion at the end of 2019. In compliance with Islamic Sharia law, it is also zero-interest, profit-loss sharing, and non-speculative, as it is pegged to gold. Buyers will need to register with Goldguard and purchase gold at live spot rates in order to obtain tokens. 
“What other cryptocurrencies have failed to achieve, OneGram has accomplished in an incredibly short space of time, and that is to show the market that we are here to stay by creating real-use cases for our token,” said Mohammed Ibraheem Khan, co-founder of OneGram. “This is a mega announcement as it is our first real-world application for OneGram.” – Block Tribune


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