The launch of digital gold could change the industry in an unprecedented way. Historically, gold has been used as the global currency to hedge against inflation. It has also served as a location for investment (commodities) and is often preferred over other asset classes such as stocks or foreign exchange, especially in traditional markets.
However, there are certain disadvantages to owning physical gold, such as the inconvenience of transportation and storage, and the risk of theft. Gold exchange-traded funds (ETFs) may emerge as an alternative option, but we must not forget that traders do not actually own gold, paying the same taxes as gold bars or gold bars, and investors must pay an annual fee of about 0.4. % to 1%. Gold contains all forms of metals such as coins and bars, while bars include all interchangeable physical forms of other precious metals such as silver and platinum.
On the contrary, digital gold stored on the blockchain is a reliable option. This is what Comtech Gold (CGO) comes to mind as it combines the benefits of gold with those of blockchain. CGO addresses the prevailing problems in gold trading by introducing a 100% gold backed cryptocurrency.
CGO serves both individuals and corporate investors. Eliminates the need for individual investors to visit local markets to purchase gold. It also makes life easier for institutional investors by eliminating the need to store gold in physical form.
Introduction to Comtech Gold
Comtech Gold has added another dimension to gold trading by releasing standard digital gold backed by 100% physical gold. The project is built on the XinFin XDC network, an advanced blockchain, and the project is Sharia compliant and certified by a well-known group of UAE Sharia scholars.
Digital gold can be converted to physical gold at any time, solving the storage and transportation issues associated with gold. Fragmentation of the precious metal makes investing in gold more popular.
CGO token holders actually own gold in the same proportion. While each holder is entitled to a certain amount of gold, the specific bar they offer may not be. The mechanism works exactly like a bank, in which the bank delivers bills of a certain amount at the request of the person withdrawing the money, but not necessarily for the same amount as the bills he deposited in cash.
Base physical gold
Each Comtech Gold token represents 1 gram of gold with prices based on prevailing global gold prices. Tokens are fully backed by gold bars, which can be identified by bar numbers. These are standard 1kg bars of 999.9 purity.
Anyone with gold-backed tokens can convert their tokens into physical 1kg gold bars. When an investor owns gold tokens equivalent to 1kg (1000 CGO tokens), they can submit a request to offer their tokens for actual 1kg gold bars.
With the expansion of the Comtech Gold network, it will be possible to buy and redeem smaller denominations of tokens of your choice from recognized retailers.
Compliance with the provisions of the Islamic Sharia
Based on the principles of Islamic law, Comtech Gold creates an ecosystem where the physical gold associated with each gold-backed token can be identified and separated. In accordance with Sharia requirements, each transaction ends with the physical delivery of tokens from the seller to the buyer. All aspects of the token are fully verifiable, from creation to redemption.
The Sharia Certificate (Fatwa) was issued by Amani Consulting Group, an organization specializing in Sharia compliant investment and Islamic finance solutions. With the support of an advisory group, the ComTech Gold Shariah certificate was introduced after verifying that the structure, mechanism, and key relevant legal documents of the Comtech Gold token comply with all necessary Shariah requirements.
The certificate complies with Islamic rules and standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
storage and storage
The physical bars behind gold coins are stored in Transguard, a globally recognized vault. The entire audit trail has been completed in the user’s wallet account. Users can use their wallets to view their balance and transfer tokens. All wallets are encrypted, which allows access only to the owner.
Storing gold has always been a challenge both at home and at the bank due to security and convenience concerns. With Comtech Gold, users can store gold in the form of tokens, move their assets, and even dispose of their investments as they see fit.