Blockchain based physical gold-backed transfer system has started operation as announced by Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank).
The transfer system called BiGA digital gold’s creation is aimed at providing banks with a blockchain based system for the issuance, repayment and transfer of digitized gold.
Before now, BiGA was launched in September allowing banks use blockchain technology to transfer digital assets representing a quantity of physical gold.
The gold to be transferred however has to be deposited initially in the Borsa Istanbul (BIST) Turkish stock exchange worth around 1 gram of gold.
In an interview withTakasbank officials, they revealed that with the adoption of blockchain tech, BiGA is unique unlike other similar platforms.
This platform distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations they said.
With the launch of Biga, gold balances would be transferrable between participating banks 24/7 to ease upgrading internal systems.
Takasbank also noted that BiGA would provide three main types of transactions which are issuance, repayment and transfers.
Alongside BiGA digital gold platform, some other financial institutions in Turkey launched like Ziraat and Vakif, Garanti BBVA, Albaraka Turk and Kuveyt Turk.
Turkey’s gold mine
With the launch of BiGA, it is no doubt going to bring ease to banks and other financial institution that deals with gold.
However, globally, Turkey remains one of the largest consumers of gold as report has it that demand for the product will continue to increase.
With gold’s significance to the history of Turkey, and investors’ choice of investing in the asset due to inflation and declining fiat currency value, BiGA has come at the right time.
It is widely believed that Turkey could have significant deposit f gold and the industry could see a significant growth rate making the nation a major gold producer.
Blockchain continues to wax stronger in Turkey
As Turkey continues to also prepare for a national blockchain infrastructure, the country has experienced continuous growth in blockchain projects in both private and the public sector.
Turkish President Recep Tayyip Erdogan in 2020 annual presidential program already said that the government would finish testing its blockchain-based “Digital Lira” in 2020.