UK Government Vetoes Royal Mint's Launch of Digital Gold After CME Exit

Royal Mint's Digital Gold Cryptocurrency Project Launch Gets Vetoed After CME Departure

Newsflash: UK Govt. Halts Royal Mint’s Plans for Gold-Backed Cryptocurrency

As reported, the Royal Mint had first unveiled it project to issues as much as $1 billion worth of digital gold tokens, dubbed Royal Mint Gold (RMG), back in 2016, which were to be traded on a blockchain -based platform run by USA exchange CME.

The U.K. Royal Mint has suspended a long-running plan to create a crypto asset representing physical gold holdings.

Many saw the project as an innovative gold investment product. This they expressed would give its investors an easy method to buy and sell physical gold held in its vaults.

Though the hope to realize this project is still alive, due to such a delay, the United Kingdom will lose the position of a pioneer that it should have had if the Royal Mint had managed to fulfill its first plan to issue its gold-backed coins in time.

The Royal Mint Gold (RMG) road could have hit a dead end suddenly ending its existence before it starts.

In April 2017, the project partners tested a blockchain-based platform, developed in collaboration with AlphaPoint and BitGo.

However, CME was one of the first companies to launch bitcoin futures trading on its platform past year; according to Reuters, CME's venture capital sector has also invested in a number of digital assets startups.

CME, on its part, told Reuters that it was "continuing to assess client demand with our partner and have nothing new to report at this time".

One of Reuters' sources claimed that "priorities shifted" away from digitization following the retirement of CEO Phupinder Gill in late 2016, followed by that of CME's head of digitization, Sandra Ro, last July.

Sources informed Reuters that the moved was blocked by the Finance Ministry owing to concerns over potential damage that could accrue to both institutions' reputation, since the Royal Mint was completely owned by the British Government.

A delegate from the Mint further added, "Unfortunately, because of the current market scenario conditions this did not seem possible, but we would surely reconsider our decision if the market conditions turn out right".

Australia's Perth Mint and the Royal Canadian Mint are two such bodies which have launched digital gold products this year, using technology supplied by fintech startups.

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