Thursday, June 21, 2018

Liberty Dollar being resurrected as a silver backed cryptocurrency

Six years ago, the creator of the Liberty Dollar found himself on the wrong side of the law and was busted for allegedly 'counterfeiting' the U.S. dollar.  Yet what was perhaps most ironic is that the courts appeared to have no idea that the term 'dollar' actually refers to a silver weight of metal instead of simply the name of the American currency.

"the money of account of the United States shall be expressed in dollars or units … of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure … silver.
The Coinage Act of 1792, and followed soon after by the Silver Coinage Acts of 1794 and 95, determined the weight of silver or gold in relation to the value of what was then the Spanish Dolar (Dollar).  And these weights remained constant until first gold and then silver were removed from the monetary system.

Yet because the creator of the Liberty Dollar named his private currency using the term 'dollar', and minted his coins too similar to the ones formerly made by the U.S. Mint, the government was able to convict Bernard Von NotHaus of counterfeiting since only the U.S. Treasury is allowed to mint coins under that name.

Fast forward to 2018...

It appears now that the Liberty Dollar is now getting new life breathed into it as the son of Bernard Von NotHaus is reinstituting a silver backed form of money under the guise of a cryptocurrency.

The Liberty Dollar is being resurrected as an asset-backed cryptocurrency that, according to its developers, "facilitates vaulted, physical ownership of precious metals and the real-time trading of physical precious metals."
The cryptocurrency, identified as LD2, is the brainchild of Extra von NotHaus (son of Liberty Dollar creator Bernard von NotHaus) and Steven Brendtro.
The cryptocurrency will first appear with silver assets, with a future issuance to include gold assets. 
According to the developers, the LD2 cryptocurrency is "a blockchain-based digital warehouse receipt, issued by [ISSUER], with the precious metals backing on deposit with the [DEPOSITORY], and the [AUDITOR] providing a monthly examination of all holdings. The [AUDITOR] works on behalf of the token holders to verify that all issued tokens are backed by the prescribed amount of precious metals. This third-party vaulting verification and independent auditing ensures that there is exactly one troy ounce of physical precious metal in the vault for each token issued, at all times —– independent of token ownership. As a digital warehouse receipt, every LD2 token is fully redeemable through the [DEPOSITORY] for its precious metals backing." 
According to Extra von NotHaus, "the first two issuances, and LD.silver, will be backed by silver before we issue a gold-backed version."  - Coin World


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