Transparency & The e-gold Ltd. Audit, A Global E-commerce Innovation
This is enlightening to understand and here is why…
If tomorrow, every e-metal account holder decided to sell his or her digital currency, there is a corresponding amount of actual precious metal available to immediately liquidate and ensure those digital dollars quickly and easily convert into national currency.
A document called the the e-gold Bullion Reserve Special Purpose Trust, guarantees at all times that there is physical metal backing the digital units. Here is a slice of that Trust Agreement:
PURPOSES OF THE TRUST
purpose of holding precious metal bullion on behalf of and for the exclusive benefit of all e-metal account holders collectively, pursuant to the e-gold, e-silver, e-platinum, and e-palladium currency contracts, all of which explicitly require 100% physical reserves backing all e-metal in circulation. The physical assets shall be held in allocated storage by secure third party repositories with each individual bullion bar uniquely and explicitly identified and catalogued. All precious metal shall be held free and clear of all liens and encumbrances whatsoever. The safekeeping arrangements with secure repositories shall require dual signature (i.e., authorization by both e-gold Ltd. and by the designated third party contracted to serve as Escrow Agent) before any bullion may be removed for any purpose;
In their report the independent auditing firm also details, over about a dozen pages, the actual precious metal bar numbers, their purity and issuer. If this was not enough, a quick visit to the e-gold web site ‘Examiner‘ page again shows how much precious metal is on hand at any time and their ‘Stats’ page shows all transactions and account balances for the previous 24 hour period!
It no secret how much precious metal e-gold Ltd. has in circulation. Its no mystery as to where its held. The exact weight of all bullion is recorded, audited and displayed at all times along with the entire activity for all accounts. That is pretty amazing for any financial company to openly disclose each day. I’ll give you a buffalo nickel if you can show me any other financial company on the Net that even comes close to this type of disclosure.
This practice is known as ‘being transparent’. Transparency means disclosing to the world all available assets and at all times guaranteeing that the digital currency, which so easily zaps around the globe, never gets issued without 100% backing. This financial transparency is very rare to find on the world today except in publicly traded companies. Virtually no one, volunteers these item and especially take the time and effort to update them daily for users and visitors to view.
e-gold Ltd. offers an extreme level of confidence & security for its account holders and that’s a reason why I consider today’s e-gold Ltd. to be one of the world’s greatest e-commerce innovations.
DigitalMoneyWorld
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