UAE firm opens window for NRIs to buy digital gold asset

By June 24, 2020Ethereum
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US-based Blockfills and US Gold Currency have partnered with UAE financial consultancy firm IBMC Financial Professionals Group to bring the asset to the Gulf, Middle East, Africa and India.

US Gold Currency is the issuer of the USG digital currency and Blockfills is the provider of digital asset liquidity through a transaction platform.

Each US Gold digital currency is backed by US American Eagle one-ounce gold coin, minted by US Federal Agency US Mint.

IBMC is introducing the digital asset to customers ranging from retail and corporate investors, banks, financial institutions, sovereign wealth funds, treasuries and asset management companies.

Details

A customer can login with a secured user ID and password on the trading platform for buying and redeeming the coins. Holders of the currency can redeem their digital assets as physical gold coin or in US dollars anywhere in the world.

Every American Eagle one-ounce gold coin backing a USG token is stored in a fully-insured, secure vault, and audited annually by an independent third-party firm.

The digital assets are issued and administered via a smart contract on Ethereum, a blockchain-based distributed computing platform.

Ideal for NRIs

Sajith Kumar, chief executive and managing director of IBMC Financial Professionals Group, said the digital asset is ideal for NRIs who have a liking for buying gold. USG is easy to handle without customs barriers, easy to hold without any country restrictions, paying insurance cost or storage charges.

The advantage is that NRIs can buy the coins online in the UAE and take delivery in physical gold coin in India, without the need to pay customs duty and other levies.

As per the existing regulations, NRIs who carry physical gold to India, are required to pay a 13% import duty.

With the launch of the digital gold currency, NRI investors will have an opportunity to reduce the cost of their transactions and have the flexibility of time for making payments.

“We have seen significant demand for gold and USG is an innovative and unique digital currency backed by the American Eagle one-ounce gold coin,” said Sheikh Khalid Bin Ahmed Al Hamed, chairman of IBMC.

“Today’s global economic climate has further increased that demand at the institutional and retail levels.”

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