GLOBCOIN is creating a digital coin called the GLX, which will be linked to a basket of currencies from the 15 largest world economies and 5 % Gold, thus reflecting the world economy and combining the best aspects of cryptocurrencies and the best aspects of fiat (or traditional) currencies.

First thing first, what is a “currency basket”?

It’s pretty much what it sounds like. Imagine you grab a basket and turn it into a smart portfolio by putting inside different currencies. You get to decide which proportion (weighting) will have each one of the currencies inside, according to the purpose of the basket. Perhaps you decide to fill your basket with 30% Euros, 30% US dollars, 30% Swiss Francs and 10% Indian rupees. You decided to assign a smaller percentage to Indian Rupees because they’re not as strong as the other currencies in the basket.

Use of currency baskets in history

Due to a shortfall of gold and US dollars, the International Monetary Fund created in 1969 the “XDR”, a unit of account whose value was based on a basket of key international currencies. The weights assigned to each currency were reviewed and adjusted according to their current prominence.

Before the Euro existed, the European Union created an artificial currency called ECU (European Currency Unit) which was, as a matter of fact, a currency basket composed by several European currencies.

In 2007, Kuwait decided to peg their currency “dinar” to a basket instead of the US dollar because the instability of the latter by that time was causing a high inflation.

How will GLOBCOIN use currency baskets?

Each currency basket created by GLOBCOIN will correspond to the needs of a specific community. GLOBCOIN relies on the expertise of a professional team to create a basket of currencies that will enable its holders to strategically use the most stable element inside the basket. This technique has proven to be even more stable than the Swiss Franc.

Also, as an investor, GLOBCOIN will give you flexibility to express your view about a currency or a group of currencies, or it will even allow you to protect your assets against the weakening of others. For example, if you think that the US dollar has a tendency to straighten, you can choose and buy a token which tracks the performance of the dollar in reference to a basket of currencies.

No bank or broker currently offers such a basket to the public. That is why the GLOBCOIN Crypto Platform appears as a game-changer in a very cost-effective way. The Blockchain technology makes it possible to distribute and “tokenize” this basket, so tokens can then be exchanged on the GLOBCOIN platform at a fraction of the cost, and the amounts can be as little as one US dollar.

Written by: Eva — GLOBCOIN Community Manager