Gold Backed Global Trade Cryptocurrency: A Strand of 3 Is Difficult to Break

Gold Backed Global Trade Cryptocurrency: A Strand of 3 Is Difficult to Break by Rory for The Daily Coin

Malaysia makes the third nation to float the idea of a gold backed trade note or cryptocurrency for global trade settlement.

Venezuela, who first demanded a return of their gold, suddenly found themselves having all kinds of monetary problems just about the same time as their gold landed in Venezuela. Then President Chavez died of cancer and Maduro took the reigns of the most prosperous nation in South America. Venezuela is floating on an ocean of oil – the largest proven reserves in the world. It’s not the best oil, but it is cheap enough that the grade is secondary to the cost.

If you aren’t aware of what’s happening in Venezuela welcome back from your 4 year off world trip. The country began experiencing monetary issues as soon as President Chavez took possession of their gold. The country has run out of physical currency on several occasions, due to hyperinflation over the past several years. Day-to-day necessities have been in short supply since the country doesn’t manufacture anything, not even toilet paper.

With all this on going chaos President Maduro developed a cryptocurrency, el Petro, backed by gold, oil, diamonds and other minerals from the rich mineral deposits found throughout Venezuela. It doesn’t matter as most countries around the world are not doing business directly with Venezuela so el Petro hasn’t done much on the world stage.

Enter Russia

At this point it’s difficult to discuss monetary or military issues involving Russia without discussing China and vice-versus. These two nations are tied together through banking systems, massive trade unions and a global security partnership, the SCO. Both nations have military personal and Russia has military equipment on the ground in Venezuela.

Russia and China both like gold, oil, diamonds and other minerals. Both nations are willing to conduct business with just about anyone because at the end of the day they are not “BFF’s” they are conducting a business transaction.

Russia may have begun accepting el Petro cryptocurrency in the early part of 2018 as an “experiment”. The source for this information, Time Magazine, is in serious question as they are nothing more than CNN in print and online form. They are so bad they don’t even mention gold, diamonds or other minerals in the backing of el Petro.

According to Time magazine, there is evidence to suggest that the Venezuelan oil-backed digital currency was helped into existence by Russian officials, bankers, and businessmen. The theory is that Russia wants to use the currency as an experiment in dodging US sanctions placed against the Eastern power. Source

Meanwhile Russia has been in high level, closed door meetings with the developer of Ethereum around this same time frame. Russia, more specifically President Putin, wants to develop a Russian ruble cryptocurrency that could be backed by gold. This idea has been floated around for the past 15+ months and now seems to be taking root – if it’s not taking root the farmer has the seed in his hand.

Now we learn just how serious Russia is about gold backed global trade settlement cryptocurrency.

According to Russian news agency, TASS, Russia’s central bank, the Bank of Russia will consider issuing gold-backed cryptocurrencies – a rather strange move considering how cryptocurrencies are generally anathema to central banks.

But before crypto bugs can start doing a round of high fives, the head of the Bank of Russia, Elvira Nabiullina, has revealed that the cryptocurrencies are not meant for retail use but rather for conducting big mutual settlements for entities with global jurisdictions.

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Recently, CoinTelegraph reported that Bank of Russia was discussing mutual settlements with Venezuela in Petro and the Russian Ruble. That will certainly mark a major milestone for Maduro’s infantile cryptocurrency.

When President Maduro’s beleaguered government launched Petro last year, we dismissed it arguing it was destined to fail due to lack of trust from the community with commodity-backed cryptos having their fair share of scandals. What we failed to anticipate was the brutal determination by the Venezuelan government in making sure it’s brainchild not only survives but thrives. Source

Enter Malaysia

With threats of “currency manipulator” from President Trump directed towards Malaysia it’s no wonder that any or all nations that are currently being held hostage by the Federal Reserve Note are beginning to awaken to the dangers of and inflation they are subjected to at the hands of Federal Reserve Bank policies. The U.S. Treasury is the vehicle to support and implement these policies through treasuries. Therefore, nations see the U.S. as the threat.

Malaysian Prime Minister Mahathir Mohamad has floated the idea of creating a gold-backed common trading currency for all of East Asia, slamming regional currency exchange as “manipulative” and criticizing the United States’ heavy-handed foreign policy. …

In the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade,” Mahathir said at the Nikkei Future of Asia conference in Japan, suggesting the currency be “based on gold because gold is much more stable and warning that promoting any one country’s currency over others would result in conflict. Exchange rates would be based on the country’s economic performance and not subject to the volatility of forex markets.

Currency trading is not something that is healthy because it is not about the performance of countries but about manipulation,” Mahathir added. The gold-backed currency would not be used within any one country, but would help protect regional trading from predatory speculators – and from the vicissitudes of the dollar, which he said unfairly held the rest of the world hostage.

You [the US] are not democratic. That is not for any single power to decide. If you want to live in a united world, a stable world, we must resort to sustainability through agreement between all nations that have a stake in that problem.” Eventually, he said, the currency could be extended to other countries outside Asia. Source

This situation continues to escalate very quickly. It seems that nations have been working 24/7 for the past 2-3 years on developing a variety of systems, or they could’ve awakened, as happened with President Maduro, and simply order a cryptocurrency built. Will it be a situation where multiple nations agree to use a common gold backed cryptocurrency or will one nation strike out as a lone wolf? If multiple nations make a joint announcement it would be impossible for the Federal Reserve / U.S. Treasury, with the military force of the Pentagon, to attack them all. It would be a devastating blow to the U.S. economy and there would be almost instantaneous hyperinflation in the U.S..

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.