Kinesis Money also known as Kinesis Cayman is a company registered in the Cayman Islands and was in news recently over the launch of their Kinesis Velocity Token (KVT) project. As per the latest update from the company, they have launched Kinesis Mint – a blockchain based platform via which it will generate two bullion-backed digital currencies. The two digital currencies are named KAU & KAG with each currency being backed by precious metals bullion on 1:1 ratio. A unit of KAU is backed by one gram of Gold while one unit of KAG is backed by 1 gram of silver. Users can get these tokens by depositing fiat currencies as well as physical bullion. The company claims that the two digital currencies will follow the likes of stablecoins and show less volatility compared to other cryptocurrencies as the value of tokens is backed by precious metals. When speaking on the Kinesis Mint Project, Thomas Coughlin, CEO of Kinesis Cayman ltd commented that “The global shift towards decentralized digital currency is picking up momentum and Kinesis Money is setting a precedent in the precious metals space”.
He also said that the new Kinesis currencies will provide a stable and trustworthy financial platform that modern consumers are looking for amidst uncertainty and volatile cryptocurrency market. The company believed that Kinesis Mint will provide a very efficient infrastructure for payment services as the project is built on Stellar Blockchain – an open source decentralised protocol developed for easy cross border transaction between any pair of currencies and facilitates digital currencies to fiat currency transfers. The company stated that Stellar ensures nearly 3000 successful transactions per second with a settlement time of 3-5 seconds for a flat fee of 0.45%. Coughlin also commented that the launch of Kinesis Mint will provide an opportunity for key players in the precious metals market to participate in Kinesis ecosystem ahead of the launch of Kinesis Exchange in few months time.
He stated that by major players in precious metals market would participate in Kinesis mint project by swapping their bullions for Kinesis coins in anticipation of earning extra potential revenue steam on their holdings. Coughlin also stated that “The Kinesis Mint is a crucial step towards their full launch of Kinesis Monetary System including launch our Visa debit card and we eagerly anticipate introducing future products across additional regions”. Headlines also suggest that many other players are looking to launch their own precious metals backed cryptocurrencies such as Russian Billionaire Vladimir Potanin’s plans to launch Digital coin for trading Palladium and Australia’s Perth Mint’s plans to launch gold backed cryptocurrencies. With the year ahead set to see the launch of multiple precious metals backed digital coins, it will be interesting to see how developments affect price action in the mainstream legacy cryptocurrency market.
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