Gold-Based Monetary System to Bring Price Stability to Crypto, Preventing Value Decrease

Gold-based monetary system Kinesis aims to bring price stability to the world of cryptocurrency and to prevent the decrease of its value.

After the gold standard that once defined the value of currencies was abandoned in the 20th century, the monetary system became dependent on central banking policies.

The Kinesis team decided to create its own "Efficient, secure and fair monetary system" based on two of the most stable commodities in the world - gold and silver.

"There is $15 trillion in gold traded every year, creating exceptional but untapped potential for investment and exchange if gold can be remonetized. Adding a yield to this exchange multiplies this potential exponentially," says Thomas Coughlin, CEO of Kinesis.

Kinesis offers digital currencies based 1:1 on allocated physical gold and silver.

The ownership of the gold is digitized with blockchain technology, which allows the user to hold or transfer currency from their Kinesis e-Wallet.

The company states that, unlike other cryptocurrencies, the transactions through the Kinesis system will take just two to three seconds as a result of their bespoke fork of the Stellar network, which is able to withstand over 3,000 transactions per second.

Besides paying the bills, the Kinesis Monetary System can be used for managing international payments with lower transfer rates offered by banks and other international payment services.

The cryptocurrencies can be transferred back to physical gold or silver as the system generates a 0.45 percent fee when these are transferred between the holders, accumulating in a pool to be distributed back to users of the system in the form of a yield.

The new - but experienced - startup is able to "Bring back a truly decentralized, [digitized] stable asset, based on blockchain technology," Kinesis says.