'BitsOfGold', an online gold trading platform, has presented its documentation for evaluation to Security and Exchange Commission of Pakistan under Regulatory Sandbox Guidelines 2019.
It is a project of the GBC Guild (Private) Limited and it is the first Pakistani company to come up with a locally developed 'blockchain' solution leveraging cryptography and open source technologies. The technology involving blockchain is a growing list of records, called blocks, which are linked using cryptography. By design, a blockchain is resistant to modification of the data. It is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. Moreover, cryptography involves creating written or generated codes that allow information to be kept secret. The information maintains its integrity during transit and while being stored.
While talking to Business Recorder here on Friday, GBC Guild CEO Muhammad Iqbal Khan said that the project documentation was handed over by GBC Guild Director Brigadier Habib ur Rehman Tamman (R) to SECP Director Syed Nayyar Hussain Zaidi.
According to him, the project envisages selling and buying back digitized gold denominations secured against real gold bullion. The buyers have the option to get physical delivery at a pre-agreed threshold or redeem at the current spot rate. The project is being called a ground breaking development for digital revolution shaping the future of Pakistan.
"The project will help lower and lower-middle income groups in Pakistan to grow their savings incrementally while allowing mid and upper income tiers to hedge their wealth against inflation and growth with deferred tax payments. The project will also aid government's efforts aimed at documenting gold transactions, a long outstanding demand by International Financial Task Force," he added.
"We have recently successfully completed the alpha testing of the 'BitsOfGold' and now it is in its beta testing stage, which will likely to be completed in 10 months and after the approval from SECP it will be fully launched in Pakistan. Right now we are testing the project with 238 clients," he added.
Talking about trading on the website, he said that one needs to add a balance in his 'BitsOfGold' account through an online payment or prepaid cards (just like mobile operator's prepaid cards) to start trading. "We only issue balance for which we have gold reserves and at least 30 percent cash for immediate redemption payments.
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