How does Thailands Fiat based Token system compare to BullionX binding?
Posted on January 27th, 2018
- The fact that BullionX binds the serial numbers of actual paper fiat currency means that the currency is removed from circulation while it is being used for digital transactions.
- If a digital currency adds fiat units to the economy, there has been the equivalent of printing of additional notes thereby diluting its trade value in international transactions.
- Also the audit trail of the added currency leads to a government guarantee which runs contrary to the cryptocurrency mandate to minimise regulation and intermediaries.
- Also the Thai token system uses banks as the keepers of the audit trail for the currencies reliability.
- A cardinal design factor of any fiat based cryptocurrency is to remove middlemen, unnecessary regulation and currency toll gates/ friction from the economy.
- BullionX design allows for minimal legally required KYC and anti-money laundering tracking without burdening the economy with ongoing bank related control and fees.