March 25, 2020 | Cryptocurrencies | No Comments
The Swiss crypto exchange Smart Valor lists the cryptocurrency PAXG and thus gives investors alternative access to gold.
The global health crisis and shaky financial movements have led people sorting to personal loans for bad credit to meet basic needs. And while global stock markets are still in the corona crisis, crypto companies are preparing to offer investors alternative ways to invest in gold.
PAX Gold – Paxos brings Gold to the Blockchain
One of these projects is the cryptocurrency PAX Gold ( PAXG ) attached to physical gold because from now PAXG can also be traded in the currency pair Swiss Franc (CHF) and British pound (GBP).
The new currency pairs were made available since March 19 after the digital trading platform Smart Valor the cryptocurrency in their quotation has taken.
The New York-based crypto companies Paxos had his tethered to gold cryptocurrency 2019 on the market brought. On Smart Valor, it can be traded in euros (EUR) and US dollars (USD) in addition to CHF and GBP. There are also currency pairs with the market-leading cryptocurrency Bitcoin ( BTC ) and the stable dollar tether ( USDT ) linked to the US dollar.
While Smart Valor speaks of being the first European crypto exchange to list the PAXG, a spokesman for Paxos confirmed to Cointelegraph that this will allow PAX gold to be traded in CHF and GBP for the first time. The cryptocurrency is also the first gold-linked asset on Smart Valor.
According to Paxos, the PAXG is also available on the Kraken, HitBTC, BitThumb and itBit crypto exchanges.
Tokenized gold as a lifeline?
Olga Feldmeier, Managing Director of Smart Valor, says the coronavirus crisis is a driving reason for the listing of PAX Gold. As the American central bank announced on March 15 that it would lower the key interest rate to 0%, savings assets are increasingly at risk of depreciation.
“With the outbreak of Corona, we could find ourselves in a new economic crisis that is taking the extracts from the Great Depression of 1930. In these times, investors need a real alternative to protect their savings. For this reason, we decided to offer tokenized gold on the SMART VALOR trading platform. ” — Olga Feldmeier |Smart Valor
Paxos emphasizes that gold was largely able to maintain its value despite the crisis since the precious metal is a so-called safe haven. The crypto company also indicates that it has approval from the New York financial services regulator.
As Cointelegraph reported, Paxos launched PAX Gold in September 2019 as the “first cryptocurrency that can be exchanged for physical gold”.
Another argument for the PAXG is the fact that the Ethereum-based crypto token is tradable around the clock. Because some big exchanges like the New York Stock Exchange closed its doors due to the corona threat, this led the crypto markets are increasingly popular because they can be reached at any time.
“When the stock exchanges are closed and a financial crisis threatens, the crypto markets suddenly become an unexpected source of liquidity for many. The cryptocurrency and tokenized asset markets are open 24 hours a day, seven days a week, and never take a break, even if all other markets do. ” — Gunnar Jaerv|First Digital Trust,