Platform to Allow Users to Spend Metal-Based Crypto Using a Debit Card

Published on by Cointele | Published on

Kinesis says these currencies - known as KAU and KAG - are based one-to one on allocated physical gold and silver.

These coins can be loaded on to a debit card and instantly converted into fiat for payments to merchants who accept Visa and Mastercard, and the company says users will also be able to withdraw funds from cash machines.

In explaining its rationale for using gold and silver as the basis for a digital currency, Kinesis described these assets as "Two of the greatest stable and definable stores of value for trade and investment."

A proprietary blockchain network has been developed for Kinesis's monetary system, which is forked off the Stellar blockchain - and the team behind the platform says its users stand to benefit from "Very high" transaction speeds and customizable fees.

Yields for participation Kinesis says that passive or active users in its ecosystem stand to gain a yield for their participation - and the company has split this into four distinct categories.

Users also earn the same share when they make their first deposit into a Kinesis Wallet, and this is known as the Depositors' Yield.

In a nod to passive participation, the Holder Yield enables owners of KAU or KAG coins to receive a 15 percent share of the transaction fees generated while they hold these currencies.

Users will also be incentivized to invite new customers to join the Kinesis platform, receiving a Recruiter Yield when someone has been successfully referred.

Much of the infrastructure that is going to be used for Kinesis - the technology used for minting silver and gold and storing it in physical vaults - already exists, and the company says it has been successfully used by ABX for a number of years.

The first is the precious metal market, where it is hoped that investors would become incentivized to use these assets if they had a yield attached to them.

x