Gold-based Mastercard Coming To U.S. And Asia In Q3
(Kitco News) - While the gold market has been mired in a three-month downtrend as a result of lackluster investor demand, one gold market fintech executive said that he sees signs of pent-up demand for the physical metal.
Ben Davies, co-founder of U.K.-based Glint Pay, a digital payments system, said in an interview with Kitco News said that he sees signs of pent-up demand for physical gold as consumers look to the precious metal to preserve their purchasing power.
“You can’t look at gold through the myopic view of the last few months,” he said. “You have to look past the summer doldrums.”
Davies added that in the long-term they are expecting gold to regain its luster as consumers embrace the need preserve their wealth and purchasing power. His comments come as the firm looks to expand into the U.S. within the third quarter.
Since late 2017, the firm, through its smartphone application has allowed U.K. and European consumers to buy any amount of gold and with an account-linked MasterCard use that allocation to make purchases. Davies said that growth in the company’s first seven months has exceeded their expectations and they are now aggressively moving forward with plans to move into North America and Japan before the end of the year.
As part of the company’s aggressive expansion, it is currently in the process of raising £15 million, which includes raising £1.25 million through crowdfunding.
“We reached our crowdfunding goal within 48 hours of launching our campaign,” he said. “We continue to move forward with our goal of making gold a recognized global currency and ultimately create a gold-backed banking system.”
Davies added that what makes his company’s application so popular is that consumers are tired of seeing their currency devalued over time. Not only is rising inflation pressures eroding fiat currency purchasing power across the globe but many investors are seeing their savings shrink.
“Gold was once a currency and it is now again thanks to our digital platform,” he said. “We have shown that by having core holding in gold, and spending that gold, you are able to beat inflation.
In the U.K., where Glint was first launched, gold has seen strong gains against the pound since the currency took a major hit in 2016 following the nation’s Brexit referendum.
Since Mid-2016 gold prices have gained more than 11% against the pound.