View source for Digital gold currency

{{Short description|Electronic money}}
{{Use dmy dates|date=January 2023}}

'''Digital gold currency''' ('''DGC''') is a form of [[electronic money]] (or [[digital currency]]) based on [[mass]] units of gold. It is a kind of [[representative money]], like a [[gold certificate (United States)|US paper gold certificate]] at the time (from 1873 to 1933) that these were exchangeable for gold on demand. The typical [[unit of account]] for such currency is linked to grams or [[troy ounce]]s of gold, although other units such as the [[gold dinar]] are sometimes used.  DGCs are backed by gold through unallocated or allocated gold storage.

Digital gold currencies are issued by a number of companies, each of which provides a system that enables users to pay each other in units that hold the same value as [[gold bullion]]. These competing providers issue a type of independent currency. The [[Reserve Bank of Zimbabwe]] is also issuing the ZiG, a digital token backed by gold, which has also been granted [[legal tender]] status.<ref>{{Cite web
 |title       = ISSUANCE AND USAGE OF GOLD-BACKED DIGITAL TOKENS
 |publisher   = [[Reserve Bank of Zimbabwe]]
 |url         = https://www.rbz.co.zw/documents/press/2023/April/Press_Statement_-_Issuance_of_Gold-backed_Digital_Tokens_1.pdf
 |date        = 28 April 2023
 |access-date  = 9 November 2023
 |url-status     = live
 |archive-url  = https://web.archive.org/web/20230610205747/https://www.rbz.co.zw/documents/press/2023/April/Press_Statement_-_Issuance_of_Gold-backed_Digital_Tokens_1.pdf
 |archive-date = 10 Jun 2023
 |df          = dmy-all
}}</ref><ref>{{Cite web
 |title       = INTRODUCTION OF THE ZIMBABWE GOLD-BACKED DIGITAL TOKEN (ZiG) AS A MEANS OF PAYMENT
 |publisher   = [[Reserve Bank of Zimbabwe]]
 |url         = https://www.rbz.co.zw/documents/press/2023/October/Press_Statement-_Introduction_of_ZiG_as_a_Means_of_Payment_-_5-10-2023.pdf
 |date        = 5 October 2023
 |access-date  = 9 November 2023
 |url-status     = live
 |archive-url  = https://web.archive.org/web/20231010012919/https://www.rbz.co.zw/documents/press/2023/October/Press_Statement-_Introduction_of_ZiG_as_a_Means_of_Payment_-_5-10-2023.pdf
 |archive-date = 10 Oct 2023
 |df          = dmy-all
}}</ref>

==Features==
{{Unreferenced section|date=May 2009}}

=== Universal currency ===
Proponents claim that DGC offers a truly global and borderless [[world currency]] system which is independent of [[exchange rate]] variations and political manipulation. Gold, silver, platinum and palladium each have recognized international currency codes under [[ISO 4217]].

===Asset protection===
Unlike [[fractional-reserve banking]], DGCs hold 100% of clients' funds in reserve as gold, silver, and/or platinum, which can be exchanged via digital certificates. Proponents of DGC systems say that deposits are protected against inflation, [[devaluation]] and other economic risks inherent in [[fiat currency|fiat currencies]]. These risks include the [[monetary policy]] of countries or territories, which are said by proponents to be harmful to the value of paper currency.

===Bullion investing===
{{Main|Gold as an investment|Silver as an investment}}

{{cl-span|All of the other digital gold-backed currency systems|date=May 2012}} can be used to buy, hold, and sell precious metals, but do not promote themselves as an "investment", as this implies an anticipated return.{{Clarify|post-text=how can I tell "this system" from others?|date=May 2012}}

=== Exchanging national currency ===
Some providers do not sell DGC directly to clients. For those DGCs, e-currency must be bought and sold via a [[digital currency exchanger]].

Currency exchangers accept payment in national currencies by a variety of methods, including [[wire transfer|Bank Wire]], Direct Deposit, Cheque, Money Order. Some exchangers also sell and fund pre-paid debit cards to make it easier for their clientele to convert DGC into an easily spendable form of national currency.

DGCs are known as [[private currency]] as they are not issued by governments.

=== Non-reversible transactions ===
Unlike the credit card industry, digital gold currency issuers generally do not have services to dispute or reverse charges. So, reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. This means that using digital gold currency is more akin to a [[cash]] transaction, while [[PayPal]] transfers, for example, could be considered more similar to credit card transactions.

The advantage of this agreement is that the operating costs of the digital currency system are significantly reduced because of the shortage of settlement of payment disputes. Plus, it allows to instantly clear digital gold currency transactions, making the funds immediately available to the recipient. Unlike credit cards, checks, ACH, and other reversible payment methods, there are typically 72 hours or more to clear.

==Risks==
As with all financial media, there are several types of risk inherent to the use of DGCs: management risk, [[political risk]], [[data security]] and exchange risk.

===Management and political risks===
DGCs, like all financial institutions and public securities, have a layer of risk in the form of the management of the issuing institution.  Controls aimed to limit management risk are called "[[governance]]".

All other{{clarify|date=July 2013}} DGC providers operate under self-regulation. DGC providers are not banks and therefore not subject to many [[bank regulation]]s that pertain to fractional reserve lending as they do not engage in lending. However, DGCs do provide a method for transferring currency from one person to another, and therefore may fall under regulations pertaining to money transmitting in various jurisdictions.

The [[Global Digital Currency Association]] (GDCA), which was founded in 2002, is a non-profit association of online currency operators, exchangers, merchants and users.  The GDCA is an example of the DGC industry's attempt at self-regulation. On their website they claim their goal is to "further the interests of the industry as a whole and help with fighting fraud and other illegal activities, arbitrate disputes and act as escrow agent when and where required."<ref>{{Cite web 
| website= Global Digital Currency Association
| title= About Us| date= 2022
|url=https://global-dca.org/about-us/}}</ref> Of the once DGC providers, Pecunix (gone, see [[Digital gold currency#Pecunix|below]]), [[Liberty Reserve]] (shut down for money laundering in 2013), and eight others became members of the association. It costs one gram of gold to file a complaint if you are not a member, and the list of filable complaints is not exhaustive. Their domain name is registered anonymously through domains by proxy, see whois.

====OS-Gold, Standard Reserve and INTGold====
Several companies claiming to be Digital Gold Currencies sprang up and failed between 1999 and 2004, such as [[OS-Gold]],<ref>{{Cite magazine |date=September 2002 |title=OS-Gold |magazine=The Gold Economy Magazine}}</ref> [[Standard Reserve]]<ref>{{Cite magazine |date=May 2003 |title=Why Standard Reserve Failed |magazine=The Gold Economy Magazine}}</ref> and [[INTGold]].<ref>{{Cite magazine |date=September 2003 |title=INTGold |magazine=The Gold Economy Magazine}}</ref> All these companies failed because the principals diverted deposits for other purposes instead of holding them in the form of gold. In each of these cases, account holders lost several million dollars' worth of gold when the "institution" failed.<ref>{{Cite web |title=Digital Gold |url=http://buy-gold.net/digital-gold |website=Buy Gold}}</ref>

====e-gold====
{{Main|e-gold#Criminal prosecution}}
[[e-gold]] was a digital gold currency founded in 1996.  A legal case was brought against e-gold in April 2007 that included violations of 18 U.S. Code § 1960 (Prohibition of unlicensed money transmitting businesses).  e-gold vigorously contested the § 1960 charges brought against it in April 2007 for more than a year.  In July 2008, following a ruling from the court that effectively enshrined in case law the [[United States Department of the Treasury|Treasury Department]]'s expansion of the definition of "[[money transmitter]]", e-gold entered into a plea agreement that detailed actions required to bring the companies into compliance with laws and regulations governing operation of a money transmitting business.  Although e-gold complied with all other terms of its plea agreement,<ref>{{Cite web |title=Defendants' Status Report Regarding Compliance Pursuant to the July 21, 2008 Plea Agreements, and Notice of Filing (2008-11-05) |url=http://legalupdate.e-gold.com/2008/11/defendants-status-report-regarding-compliance-pursuant-to-the-july-21-2008-plea-agreements-and-notice-of-filing-2008-11-0.html |access-date=14 May 2016 |website=e-gold Legal Update}}</ref> it was not able to obtain money transmitting licenses due to its guilty plea.<ref>{{Cite web |title=e-gold Update: Value Access |url=http://blog.e-gold.com/2009/11/egold-update-value-access.html |access-date=14 May 2016 |website=e-gold Blog}}</ref> Since returning value to customers could constitute money transmitting without a license, e-gold entered into an agreement in 2010 with the US Government to enable e-gold account holders to claim the "monetized value" of their accounts,<ref>{{Cite web |title=e-gold Update: Value Access Plan Approved |url=http://blog.e-gold.com/2010/12/value-access-plan-approved.html |access-date=14 May 2016 |website=e-gold Blog}}</ref> collectively valued in excess of 90 million US Dollars.<ref>{{Cite web |title=e-gold Value Access Plan - Monetization Complete |url=http://blog.e-gold.com/2013/04/new-post-now-that.html |access-date=14 May 2016 |website=e-gold Blog}}</ref>

====1mdc====
{{Main|1mdc}}
1mdc was a digital gold currency backed by e-gold<ref>{{Cite web |date=21 October 2006 |title=1mdc.com is similar to e-gold(R) and Pecunix(R) |url=https://www.1mdc.com/faq.html |url-status=unfit |archive-url=https://web.archive.org/web/20061021212944/https://www.1mdc.com/faq.html |archive-date=21 October 2006 |access-date=14 May 2016}}</ref> rather than by physical gold. On 27 April 2007, a US court ordered [[e-gold]] to freeze or block the e-gold accounts 1mdc used to back the digital gold currency it issued.<ref>{{Cite web |date=3 May 2007 |title=1mdc.com is similar to e-gold(R) and Pecunix(R) |url=http://1mdc.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20070503103108/http://1mdc.com/ |archive-date=3 May 2007 |access-date=14 May 2016}}</ref> Before the year was out, the 1mdc website was no longer accessible.<ref>{{Cite web |date=1 June 2007 |title=1mdc.com is similar to e-gold(R) and Pecunix(R) |url=http://1mdc.com |url-status=dead |archive-url=https://web.archive.org/web/20070602232321/http://1mdc.com/ |archive-date=2 June 2007 |access-date=14 May 2016}}</ref>

====e-Bullion====
{{Main|e-Bullion}}
[[E-Bullion]] was a digital-gold currency exchange that had risen, then become defunct around 2008.

In August 2008, James Fayed, the owner and chief executive official of the E-Bullion Company, was taken into United States Federal custody to face felony charges of conducting unlicensed money transactions and the murder of his wife. Shortly thereafter, the website ceased to be available. As a consequence of these charges, by January 2010 the U.S. Government had seized all of the assets of e-Bullion, resulting in the complete closure of the company.<ref>{{Cite book |last=Mullan |first=P. Carl |title=A History of Digital Currency in the United States: New Technology in an Unregulated Market |publisher=Springer |year=2016 |isbn=9781137568700 |pages=116}}</ref> In June 2011 a California jury found Fayed guilty of murder and sentenced him to death.

====Pecunix====
Pecunix was a gold based digital currency (or e-currency) in which accounts had balances in GAU (gold grams).

Pecunix was founded by Simon "Sidd" Davis in 2002, and was registered and incorporated in Panama.<ref>{{Cite web |title=Pecunix |url=http://info.pecunix.com/ |url-status=dead |archive-url=https://web.archive.org/web/20070711210513/http://info.pecunix.com/ |archive-date=11 July 2007 |access-date=5 July 2015}}</ref> All gold bullion was originally stored with Mat Securitas Express AG in Zürich, Switzerland, but in 2008 the Pecunix directors transferred the bullion to an undisclosed location.<ref>{{cite web|title=APEXCGI - Pecunix Hosting|url=https://www.apexcgi.com/pecunixhosting.php|website=apexcgi.com|date=2024-12-31|access-date=2025-10-09|quote=As of July 2008, Pecunix had 2375 oz (73.92 kilograms) of gold in storage. Pecunix gold bullion is stored with Mat Securities Express AG in Zurich, Switzerland.}}</ref>

In a 2012 interview with ''[[DGC Magazine]]'', Mr. Davis described the development of the [[Voucher-Safe]] software and [[peer-to-peer]] network for the exchange of digital currencies.<ref>{{Cite web |date=20 November 2012 |title=Voucher-Safe, a Next Generation Digital Currency |url=http://www.dgcmagazine.com/voucher-safe-a-next-generation-digital-currency-part-i/ |access-date=1 January 2015 |publisher=Digital & Gold Currency Magazine}}</ref> In early 2014, Pecunix announced they would be replacing their Pecunix Payments system with the open source Voucher-Safe system and PX-Gold. By the end of 2014, all legitimate digital currency exchangers had ceased dealing with Pecunix. In early 2015, Pecunix disabled the log-in feature of their website, thereby preventing all users from accessing their accounts. A statement on the Pecunix website claimed that this was a temporary change "due to new management and restructuring", but access was never restored. The P2P Voucher Payment System became fully operational in August 2015,<ref>{{Cite web |title=Voucher Safe |url=http://voucher-safe.com/ |access-date=2 January 2017 |archive-date=23 December 2016 |archive-url=https://web.archive.org/web/20161223123749/http://www.voucher-safe.com/ |url-status=dead }}</ref> but PX-Gold never came into existence. Account holders never recovered their funds.{{citation needed|date=August 2023}}

===Data security===
Digital gold systems are completely dependent on electronic storage and transmission of account ownership information.{{Citation needed|date=October 2012}} Therefore, the security of a given digital currency account is dependent upon the security of the issuer as well as the security of the accountholder's computer.

While the digital gold issuers employ data security experts to protect their systems, the average accountholder's computer is poorly protected against malware (trojans, worms and viruses) that can be used to intercept information used to access the user's DGC account. Therefore, the most common attacks on digital currency systems are directed against accountholders' computers by the use of [[malicious spam]], [[phishing]] and other methods.{{Citation needed|date=June 2010}}

Issuers have taken quite different approaches to this problem. E-gold basically places the entire responsibility on the user, and employs a user-name and password authentication system that is weak and highly vulnerable to interception by malware. (Though it is the most common authentication method used by online banks.) The "not our problem" approach to user security has negatively contributed to e-gold's public image, as not a few e-gold accounts have been hacked and swept clean by attackers..{{Citation needed|date=October 2010}}

e-Bullion offers account holders a "Cryptocard" security token that changes the passphrase with each logon, but charges the account holder US$99.50 for the token. E-bullion does not require customers to use the Cryptocard, so account holders who choose not to get one may suffer from the same security issues as e-gold customers.

Pecunix devised a unique rotating key system that provides many of the benefits of a security token without requiring the user to buy one. Pecunix also supported the use of [[Pretty Good Privacy|PGP signature]]s to access an account, which is probably the strongest of all authentication methods.

===Exchange risk===
Digital gold currency is a form of [[representative money]] as it directly represents gold metal on deposit or in custody. This depends on the issuer.  Most issuers have the gold on deposit - i.e., the issuer will redeem the digital currency obligation with physical metal.  Just as the exchange rates of national currencies fluctuate against each other, the exchange rates of DGCs fluctuate against national currencies, which is reflected by the price of gold in a particular currency. This creates exchange risk for any account holder, in the same way one would experience exchange risk by holding a bank account in a foreign currency.

Some DGC holders make use of the digital currency for daily monetary transactions, even though most of their normal income and expenses are denominated in the national currency of their home country.  Fluctuations in the value of gold against their national currency can create some confusion and difficulty for new users as they see the "value" of their DGC account fluctuate in terms of their native currency.

In contrast to exchange risk, caused by gold's fluctuation against national currency, the [[purchasing power]] of gold (and therefore DGCs) is measured by its fluctuation against other commodities, goods and services. Since gold has historically been the refuge of choice in times of inflation or economic hardship, the purchasing power of gold becomes stronger during times of negative sentiment in the markets.<ref>{{Cite news |last=Tang |first=Frank |date=22 January 2008 |title=US gold bounces on inflation fears, safe haven bid |work=Reuters |url=https://www.reuters.com/article/oilRpt/idUSN2238876720080122}}</ref> Due to this speculative interference, there are times when purchasing power has also declined. For example, in 2007&ndash;2008, gold volatility closely tracked the run-up in oil prices.<ref>{{Cite web 
| author1=Ty Andros| title=TedBits|date= April 2008
|url=http://news.goldseek.com/GoldSeek/1207289100.php |access-date=14 January 2023 |website=news.goldseek.com}}</ref>

==Providers==
Comparison of operating DGCs:
{| class="wikitable sortable" style="font-size:92%"
! Digital gold currency
! Birth
! Death
! [[Financial regulation|Financially regulated]]
! [[Global Digital Currency Association|GDCA]]<br />member
! Bullion<br />stored
! Bullion audit<br />trail
! Number<br />of user<br />accounts
! [[Digital currency exchanger|DCE]] transfers accepted
! [[Wire transfer]]s accepted
! Annual storage fee
! Processing fee<br />(when receiving from another user)
|-
| [[e-dinar]]
| 2000
| 
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| align="center"| {{Y}}
| 1%
| 1% (with max. 0.015 gold dinar)<ref>{{Cite web |title=The Islamic Dinar is a specific weight of 22k gold (.917) equivalent to 4.25 grams |url=https://www.e-dinar.com/cgi/?page=dinardirham&a=_1 |access-date=8 January 2013 |archive-date=17 July 2012 |archive-url=https://web.archive.org/web/20120717101826/https://www.e-dinar.com/cgi/?page=dinardirham&a=_1 |url-status=dead }}</ref>
|-
| Pecunix
| 2002
| 2015
| align="center"| {{N}}
| align="center"| {{Y}}
| 2,777 oz gold
| align="center"| {{Y}}
| Undisclosed
| align="center"| {{Y}}
| align="center"| {{N}}
| 0%
| 0.15 - 0.50% (with min. 0.0001 - max. 3.0 gold grams)<ref>{{Cite web |title=In Depth - Pecunix Fee Structure |url=http://www.pecunix.com/money.refined...ind.feestructure |url-status=dead |archive-url=https://web.archive.org/web/20021220095646/http://pecunix.com/money.refined...ind.feestructure |archive-date=20 December 2002}}</ref>
|-
| iGolder
| 2005
| 2013
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| align="center"| {{Y}}
| x%
| 1%
|-
| Liberty Reserve
| 2004
| 2013
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| align="center"| {{N}}
| x%
| 1%
|-
| gbullion
| 2007
| 
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| Undisclosed
| align="center"| {{N}}
| align="center"| {{N}}
| x%
| 1%
|-
| [[e-gold]]
| 1996
| 2008<ref>{{Cite magazine|url=https://www.wired.com/2009/06/e-gold/|title=Bullion and Bandits: The Improbable Rise and Fall of E-Gold|first=Kim|last=Zetter|magazine=Wired}}</ref>
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{Y}}<ref>{{Cite web |date=10 January 2008 |title=e-gold Examiner |url=http://www.e-gold.com/examiner.html |url-status=unfit |archive-url=https://web.archive.org/web/20080110180734/http://www.e-gold.com/examiner.html |archive-date=10 January 2008 |access-date=14 May 2016}}</ref>
| over 1.6&nbsp;million funded accounts in May 2007<ref>{{Cite web |date=30 April 2007 |title=e-gold Statistics |url=http://www.e-gold.com/stats.html |url-status=unfit |archive-url=https://web.archive.org/web/20070430233611/http://www.e-gold.com/stats.html |archive-date=30 April 2007 |access-date=14 May 2016}}</ref>
| align="center"| {{Y}}<ref>{{Cite web |date=11 January 2008 |title=e-gold Directory |url=http://www.e-gold.com/unsecure/links.htm |url-status=unfit |archive-url=https://web.archive.org/web/20080111023934/http://www.e-gold.com/unsecure/links.htm |archive-date=11 January 2008 |access-date=14 May 2016}}</ref><ref>{{Cite web |title=IceGold - first e-currency exchange in Europe |url=http://www.icegold.com/index.php |access-date=14 May 2016 |website=icegold.com}}</ref><ref>{{Cite web |date=23 March 2007 |title=e-gold... gold itself, circulated electronically |url=http://www.gitgold.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20070323143357/http://www.gitgold.com/ |archive-date=23 March 2007 |access-date=14 May 2016}}</ref><ref>{{Cite web |date=21 March 2007 |title=London Gold Exchange - E-gold, Digital Currency, eCurrency - buy, sell, convert |url=http://www.londongoldexchange.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20070321022543/http://www.londongoldexchange.com/ |archive-date=21 March 2007 |access-date=14 May 2016}}</ref><ref>{{Cite web |date=23 March 2007 |title=The Bullion Exchange Gold Exchange Provider. Precious Metals, E-Gold and E-Bullion |url=http://www.thebullionexchange.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20070323102719/http://www.thebullionexchange.com/ |archive-date=23 March 2007 |access-date=14 May 2016}}</ref><ref>{{Cite web |date=22 March 2007 |title=O M N I P A Y |url=http://www.omnipay.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20070322224719/http://www.omnipay.com/ |archive-date=22 March 2007 |access-date=14 May 2016}}</ref>
| align="center"| {{N}}
| 1% per annum<ref name=":1">{{Cite web |date=7 March 2007 |title=e-gold fees |url=http://www.e-gold.com/unsecure/fees.htm |url-status=unfit |archive-url=https://web.archive.org/web/20070307011949/http://www.e-gold.com/unsecure/fees.htm |archive-date=7 March 2007 |access-date=14 May 2016}}</ref>
| Depended on amount spent<ref name=":1" />
|-
| [[eCache]]
| ~2007
| <2014
| 
| 
| 
| 
| 
| 
| 
| 
|
|-
| [[Gold Bullion International LLC]]
| 2014<ref>{{Cite web |last=Shieber |first=Jonathan |date=3 December 2014 |title=Bitreserve Brings Bitcoin To The Gold Standard |url=https://techcrunch.com/2014/12/03/bitreserve-brings-bitcoin-to-the-gold-standard/ |access-date=14 May 2016 |website=TechCrunch}}</ref>
| 
| align="center"| {{N}}
| align="center"| {{N}}
| Undisclosed
| align="center"| {{Y}}
| Undisclosed
| align="center"| {{Y}}
| align="center"| {{Y}}
| 0%
|30bit/s [[Ripple (payment protocol)]] 
|-
| [[Global Standard Gold (AUG)]]
| 2015<ref>{{Cite web |date=30 December 2015 |title=Gold-Backed Digital Currency Ditches the Blockchain |url=http://www.americanbanker.com/news/law-regulation/gold-backed-digital-currency-ditches-the-blockchain-1078585-1.html |access-date=14 May 2016 |website=American Banker}}</ref>
| 
| align="center"| {{y}}<ref>{{Cite web |title=COEPTIS - Better Money, Better Payments |url=http://coeptis.com/#/states |url-status=dead |archive-url=https://web.archive.org/web/20160503032948/http://www.coeptis.com/#/states |archive-date=3 May 2016 |access-date=14 May 2016 |website=coeptis.com}}</ref>
| align="center"| {{N}}
| Undisclosed
| Undisclosed
| Undisclosed
| align="center"| {{Y}}<ref>{{Cite web |title=FIDELIS-FX |url=https://fidelis-fx.com/ |url-status=dead |archive-url=https://web.archive.org/web/20170425010958/http://fidelis-fx.com/ |archive-date=25 April 2017 |access-date=14 May 2016 |website=fidelis-fx.com}}</ref>
| align="center"| {{N}}
| Depends on balance<ref name=":0">{{Cite web |title=COEPTIS - Better Money, Better Payments |url=http://coeptis.com/#/fees |url-status=dead |archive-url=https://web.archive.org/web/20160503032948/http://www.coeptis.com/#/fees |archive-date=3 May 2016 |access-date=14 May 2016 |website=coeptis.com}}</ref>
| Depends on amount spent<ref name=":0" />
|-
|[[GoldMoney]] / [[BitGold]]
|2015
|
|align="center"|{{y}}
|
|20,799,464.939 grams Mar. 2017
|align="center"|{{Y}}
|1,425,254 March 2016
|
|align="center"|{{Y}}
|0% personal
|0.5% personal accounts / 1% business
|}

==Criticisms==
DGC providers and exchangers have been accused of being a medium for fraudulent [[high-yield investment program]] (HYIP) schemes. In January 2006, ''[[BusinessWeek]]'' reported that [[ShadowCrew]], an online gang, used the [[e-gold]] system in a massive [[identity theft]] and fraud scheme.<ref>{{Cite news |date=9 January 2006 |title=Gold Rush |work=Business Week |url=http://www.businessweek.com/magazine/content/06_02/b3966094.htm |url-status=dead |access-date=22 January 2008 |archive-url=https://web.archive.org/web/20080212071332/http://www.businessweek.com/magazine/content/06_02/b3966094.htm |archive-date=12 February 2008}}</ref> Traditional banks are also used frequently for such fraud. Allegations that e-gold is a safe medium for crime and fraud are strongly denied by its chairman and founder, Dr. [[Douglas Jackson (businessman)|Douglas Jackson]].<ref>{{Cite web |date=6 January 2006 |title=Letter from Dr. Douglas Jackson; Chairman, e-gold, Ltd. |url=http://www.e-gold.com/letter.html |access-date=22 January 2008}}</ref> Further, it can be argued that such problems lay with the source of the information or monies, rather than the location of storage of such ill-gotten gains.  In other words, it would be difficult to claim the bank as villain when the criminal activity occurred by other parties away from the storage location.

Many DGC providers do not disclose the amount of bullion stored (see table), or do not allow independent external bullion audits, raising concerns that such companies do not maintain a 100% [[reserve ratio]], or that their currency is entirely virtual and not backed by physical gold at all.{{Citation needed|date=June 2010}}

Due to increase of compliance requirements for [[payment service provider]]s, Jersey-based GoldMoney decided to suspend its DGC service as from 21 January 2012<ref>{{Cite web |title=GoldMoney Pulls Out, Closes Payments Part of Business &#124; DGC Blog |url=http://www.dgcmagazine.com/blog/index.php/2011/12/21/goldmoney-pulls-out-closes-payments-part-of-business/ |url-status=dead |archive-url=https://web.archive.org/web/20120114044841/http://www.dgcmagazine.com/blog/index.php/2011/12/21/goldmoney-pulls-out-closes-payments-part-of-business/ |archive-date=14 January 2012 |access-date=22 February 2012}}</ref>

== Cultural references ==
*The novel ''[[Alongside Night]]'' by [[J. Neil Schulman]] features several types of competing DGCs.{{Nonspecific|date=April 2010}}
*The novel ''[[Cryptonomicon]]'' by [[Neal Stephenson]] uses the idea of a gold-based digital currency in combination with strong [[cryptography]].<ref>{{Cite book |last=Stephenson |first=Neal |url=https://archive.org/details/cryptonomicon00neal/page/387 |title=Cryptonomicon |publisher=Avon Books |year=2002 |isbn=0-06-051280-6 |location=New York |pages=[https://archive.org/details/cryptonomicon00neal/page/387 387, 476–477, 500, 659] |url-access=registration}}</ref>
*The novel ''Minerva'' by [[Robert P. Murphy]] features DGCs prominently.<ref>{{Cite web |last=Murphy |first=Robert P. |year=2004 |title=Minerva |url=http://www.strike-the-root.com/content/minerva-chapter-9 |publisher=strike-the-root.com}}</ref>
*The novel ''[[Molon Labe! (book)|Molon Labe!]]'' by [[Kenneth W. Royce]] features a gold based digital accounting system very similar to DGCs.{{Nonspecific|date=April 2010}}
*The novel ''The Cryptographer'' by [[Tobias Hill]] is centered around Soft Gold, a DGC.{{Nonspecific|date=April 2010}}
*The novel ''The Way to Freedom'' by Carl Kyler is about gold money and digital gold currencies.<ref>{{Cite web |last=Kyler |first=Carl |year=2010 |title=The Way to Freedom |url=http://www.thewaytofreedom.net/}}</ref>

==See also==
{{Div col|colwidth=22em}}
* [[Bitcoin]]
* [[Cryptocurrency]]
* [[Full-reserve banking]]
* [[Goldback]]
* [[Gold exchange-traded fund]]
* [[Gold exchange-traded product]]
* [[Gold standard]]
* [[Gold to Go]] (Automated banking machine)
* [[Vaulted gold]]
* [[Vera Valor]]
{{Div col end}}

==References==
{{Reflist}}

{{Means of Exchange}}
{{Digital gold currencies}}

{{DEFAULTSORT:Digital Gold Currency}}
[[Category:Digital gold currencies| ]]