The New York State Department of Financial Services
("NYDFS") authorized an existing NYDFS licensee to offer
a gold-backed virtual currency. This is the first gold-backed
virtual currency in New York State.
In addition to authorizing Paxos Trust Company LLC to offer PAX
Gold, NYDFS also approved BUSD, a virtual currency pegged to the
U.S. dollar.
Commentary
Steven Lofchie
The new "currency" is essentially a blockchain-based,
custodial receipt for physical gold. It is unlikely that it will
have that much use as a currency, at least within the United
States, but perhaps merchants in countries where inflation is high,
or where there is a threat of a governmental seizure of the banks,
will find the product attractive as a currency.
