FEATURES of Universal currency
Proponents argue that DGC presents a accurately global and borderless world currency system which is free of exchange rate variations and political handling. Gold, silver, platinum and palladium every one have familiar international currency codes under ISO
4217. In adding to digital gold currency, GoldMoney, e-Bullion and eLibertyDollar as well offer digital currency backed by silver.
different fractional-reserve banking, DGCs (such as e-gold and GoldMoney) clutch 100% of clients' funds in assets with a store of worth. Proponents of DGC systems compete that deposits are protected in opposition to inflation, depression and other likely economic risks intrinsic in fiat currencies. These danger comprise the monetary policy of countries or territories, which are seeming by proponents to be harmful to the value of paper currency.
major articles: Silver as an investment and Gold as an investment.
For illustration, GoldMoney is accessible and accepted for U.S. self-directed Individual Retirement Accounts during The Entrust Group.
Every one of of the additional digital gold currency systems can be used to buy, hold, and sell expensive metals, but do not sponsor themselves as an "investment", as this involve an predictable return.
Exchanging national currency
A quantity of providers, like e-gold, Pecunix, Liberty Reserve do not sell DGC straightforwardly to clients. designed for those DGCs, e-currency have to be bought and sold via a digital currency exchanger for instance GoldNow or London Gold Exchange.
Currency exchangers agree to payment in national currencies by a multiplicity of techniques, including Bank Wire, Direct Deposit, Check, Money Order. a number of exchangers also trade and fund pre-paid debit cards to build it easier for their clientele to change DGC into an straightforwardly spendable form of national currency.
According to the DGC issuers that do not honestly sell DGC to clients, this remain their system free of any replace risk, which is in its place taken by the free exchange providers. DGCs are recognized as personal currency as they are not issued by administration.
Dissimilar the credit card industry, DGC issuers usually do not package services such as negation. Thus having transactions unwillingly reversed, even in case of a lawful error, illegal spend, or failure of a vendor to provide goods is not likely. In this respect, a DGC expend is more akin to a cash transaction while PayPal transmit, for illustration, could be careful additional parallel to credit card transactions.
The benefit of this arrangement is that the in service costs of the digital currency system are very much summary by not having to resolve payment argument. as well, it allows DGC transactions to clear instantaneously making the funds directly available to the receiver. By contrast credit cards, checks, ACH and further reversible payment techniques usually have a "clearing time" of 72 hours or more.
The need of payment repudiation in DGCs leaves an chance for third-parties to give payment escrow services to buyers and sellers in untrusted environments, for example internet public sale websites.