Cryptocurrencies do not always carry the label of “legal tender” in most countries. In fact, the number of countries where Bitcoin and altcoins are legal tender can almost be counted on one hand. Quintric is trying to change that by issuing legal cryptocurrencies backed by silver and gold. It is quite an interesting project, although its chances of success are unknown.
The Quintric Project is a Bold Venture
It is safe to say stablecoins are becoming the new hot commodity in the financial sector. For those who are unaware, a stablecoin is a (digital) currency pegged to the US dollar, precious metals, or other types of assets which tend to retain their value most of the time. In the case of Quintric, the team aims to issue cryptocurrencies which are legal tender and backed by both gold and silver. It is an interesting decision, although it’s one that will also be somewhat controversial.
Quintric wants to combine the best aspects of precious metals, cryptocurrencies, and legal tender in one package. This is all much easier said than done, as not everyone in the US is legally allowed to issue their own digital currency, regardless of what it is backed by. In the case of Quintric, it will be interesting to see how that venture plays out in the long run.
The advantages Quintric offers over traditional cryptocurrencies, fiat currencies, and precious metals are quite evident. This token is not a security, as its official legal definition is a “deed to legal tender”. At the same time, Quintric wants to ensure these coins – known as Quints – are spendable, tangible, scarce, and possess inherent value. We may see a lot more currencies backed by precious metals and other natural resources in the future if this project proves successful.
Right now, the plan is to issue multiple digital currencies. First of all, there is the Quint, which is backed by US gold and has a value of 5 US gold cents. There’s also the QuintS, which is backed by five US silver cents. Support for international gold and silver currencies is also on the horizon, and those currencies will be known as the iQuint and iQuintS. It makes a lot of sense on paper, but getting people excited about these currencies will be a challenge.
What is rather intriguing is that these Quintric tokens do not incur vaulting fees. Quintric covers the carrying costs associated with dealing with precious metals. The company will vault and insure all precious metal holdings at no cost to token holders. It’s an intriguing concept, although it remains to be seen if that will be sufficient to entice many customers. These digital currencies are advertised as being a way to preserve purchasing power, something that isn’t possible with US dollar-backed stablecoins right now.
For the time being, we will have to wait and see how legitimate Quintric really is. While the products they offer may sound appealing to investors, it’s also a company very few people have heard of. The importance of building and maintaining a solid reputation in the world of digital currencies should not be underestimated by any means. Though the concept is appealing, only time will tell if this idea can gain sufficient traction.