Chileans can have their digital gold with Blockchain technology

Gold lovers in Chile will be able to have their digital version thanks to an alliance between a local company and a fintech based on Blockchain technology.

1 gram of gold will be the representation of each token that the Chilean company Aurica Metales intends to offer to the market, through the tokenization of the precious metal backed by physical gold.

According to a statement revealed by the Chilean newspaper Diario Financiero on Wednesday, December 16, 2020, the Latin American company will be the first of its kind to offer this product in the region, thanks to its association with the British fintech company Aurus Technologies LTD. to market the AurusGOLD „AWG“ product.

The general manager of the company specialized in the commercialization of coins based on the precious metal, Felipe Mujica, said that he was very „happy“ with the alliance to be able to offer his clients in the Latin American region the possibility of accessing the digital era of investments in this type of assets.

As described by the company, the tokens are already being commercialized, with the support of 1:1 in grams of physical gold, which can be exchanged by investors interested in acquiring the digital asset at any time.

AurusGOLD comes with a hardware wallet for cold storage, for greater security.

Francisco Leyton, Aurus Technologies‘ director for the Latin American region, told the Chilean media that „With Aurica we will be able to make gold more accessible and convenient for investors in Chile and Latin America. Now people will be able to buy, store and transfer gold in a reliable and safe way, avoiding the frictions that are presented to the physical world“.

Unlike financial instruments such as Gold ETFs, these tokens allow for immediate transfer, at low cost and without waiting for third party approval.

In a country like Chile with a different type of currency than the dollar and existing regulations, ETFs require the creation of a trading account, approval, transfer of funds to the account and convertibility to foreign currency, before they can finally be converted to precious metals financial instruments, according to Leyton.

With the power of Aurus‘ Blockchain technology of Crypto Profit, the Chilean company will be able to offer its digital tokens backed by physical gold very close to the spot price of the precious metal, allowing the convertibility of gold into a fractional, portable and more affordable asset.

Last September, Aurica became the first company that can certify the quality of gold in Chile thanks to the use of X-Rays that allow to certify in seconds with 99.99 percent confidence, the composition of small pieces of precious metals like gold and silver.

Aurica Metales, is the official representative of Kitco Metals, the largest precious metal broker in the world.

Digital gold to save space

Investors interested in acquiring the precious metal should not have to worry about physical space for its storage or insurance, and can acquire fractions of minimum transaction fees.

The tokenization of real world assets is becoming more frequent thanks to the power of Blockchain technology. From art, music, real estate to precious metals, it is now possible to think of a new form of digital economy that is encompassing real life products with tangible value for the average investor.

With the isolation forced on us by the COVID-19 pandemic, the need for new digital and contactless business models is becoming the norm in a world increasingly dependent on social distancing.

Aurica Metales‘ proposal is part of the needs that many companies are requiring to digitize their business models due to the forced closure of physical marketing operations due to the coronavirus pandemic.

And at this point, the use of Blockchain technology is evident in every intelligent strategy to carry out the remote operations of their traditional business models.