ABOUT GOLDEN CURRENCY

Project goals The main goal of the project is to establish monetary system of the new Golden currency, which includes the following elements: а. Golden currency. The first fully functional global private currency issuance, both cash and non-cash, 100% backed by gold. б. Golden currency infrastructure. Establishment and development of infrastructure for new currency operation, ensuring its efficient and convenient utilization and maximizing its use. The key elements of the infrastructure are: global banking network with banking infrastructure (Golden Bank); crypto-fiat сurrency exchange integrated with the banking network (Golden Exchange); gold depository. 1.2. Blockchain use Ten years ago the establishment of entities and systems that could be completely transparent and virtually independent of certain people was difficult. And consequently the development of reliable independent private currencies, which could provide reliability and stability, relatively low risks for their owners and become competitive in comparison with national currencies, was almost impossible. Blockchain invention and use allows you to deal with the relevant issues and it can become an important competitive advantage for the currency that utilizes it. The theoretical basis for the development of private currencies was developed in 1970s (see, for example, Friedrich A. Hayek, Private Money, 1976), but only now, thanks to blockchain, it is possible to establish effective private currencies, and Golden Currency is the first such project.

Blockchain is going to be used in all key elements of the new system: management and control of gold reserves — as an important element of reliability and transparency, publicity of the system; banking network — for cross-border payments, transfers, currency conversions — to ensure speed, reliability, universality, as well as for integration with the currency exchange; currency exchange — for fiat and crypto-currency exchange to ensure the speed and reliability of transactions In general, blockchain technologies will be aimed at ensuring decentralization, control, providing link between fiat and crypto-currencies and opportunities for banking and currency transactions, as quick as possible, with minimal costs to the user. 1.3. Prerequisites for project implementation 1.3.1. Lack of reliable money 1.3.1.1. Volatility of crypto and fiat money Bitcoin and many other crypto-currencies, showing volatility, sometimes reaching 30% or more for even one day — currently do not provide favorable opportunities to effectively use them as money, for example, as a medium of circulation. At the moment, they are rather an object of speculative investment, which showed retrospectively high profitability, and which can show high profitability in the future. Dynamics of bitcoin value (January 2017-January 2018) As for fiat national money — for many countries there is a problem of high inflation and rapid depreciation of national currencies. There are at least 56 examples of so-called hyperinflation, in which the depreciation of national currencies occurred at a rate exceeding 50% per month. There is also a much larger number of cases and countries, in which such inflation was lower, but it was very noticeable for the population.

GOLDEN CURRENCY INFRASTRUCTURE

Currency issuance Initial currency issuance will be executed following the results of ICO on the basis of the first Golden bank. A predetermined portion of funds collected during the ICO (see below, in ICO section) will be used to buy gold and produce currency notes. Before the issuance, an issuance memorandum will be formed and it will fix all the details of such issuance, including its minimum volume and the procedure for exchanging Golden for gold. As well, the memorandum will detail preliminary booking of Golden, wherever issuance provides such an opportunity. The printed Golden notes will be distributed through the Golden bank, within which users can open an account in Golden, exchange their money for Golden, withdraw Golden from ATMs and cash desks of the bank, or receive Golden to their bank accounts after the Golden issuance, if its terms made possible preliminary applications. As the number of banknotes decreases, additional emission will start in the bank, each of which will be accompanied by a preliminary public emission memorandum. Emissions will be made within jurisdictions that allow the issuance of private money. The number of issued Golden and their compliance with the amount of gold in depository will be subject to regular audit, the results of which will be published publicly. 3.2. Gold backing of the currency Each Golden will be backed by a fixed amount of gold. Preliminarily it is assumed that each Golden will be backed by gold whose initial equivalency will be at least $1.00 US (approximately 0.02 g of gold) (more precisely, the volume of gold in one Golden will be determined by the time of the issuance, can be changed to the moment of the first issue, but will remain unchanged in the future). The details on the gold backing and denominations will be presented before the initial issuance, in the emission memorandum.

for Golden, withdraw Golden from ATMs and cash desks of the bank, or receive Golden to their bank accounts after the Golden issuance, if its terms made possible preliminary applications. As the number of banknotes decreases, additional emission will start in the bank, each of which will be accompanied by a preliminary public emission memorandum. Emissions will be made within jurisdictions that allow the issuance of private money. The number of issued Golden and their compliance with the amount of gold in depository will be subject to regular audit, the results of which will be published publicly. 3.2. Gold backing of the currency Each Golden will be backed by a fixed amount of gold. Preliminarily it is assumed that each Golden will be backed by gold whose initial equivalency will be at least $1.00 US (approximately 0.02 g of gold) (more precisely, the volume of gold in one Golden will be determined by the time of the issuance, can be changed to the moment of the first issue, but will remain unchanged in the future). The details on the gold backing and denominations will be presented before the initial issuance, in the emission memorandum.