Bitcoin is as good as gold - or at least, Canadian Bitcoin exchange Quadriga CX thinks so.
Earlier this month, Quadriga CX became the first Bitcoin exchange in
The exchange’s founders, Mike Patryn and Gerald Cotten, told Bitcoin Magazine that the decision to trade gold was motivated from a desire to provide users a way to obtain Bitcoin without relying on banks or fiat currency.
“Other exchanges have allowed for coin-to-coin trading; we wanted to provide a more unique service,” Patryn told the magazine. “As we have a great deal of past experience with gold trading, it was not a particularly large leap to enable XBT/XAU trades on our website.”
Users can deposit or withdraw funds from their accounts in gold bullion, which can either be shipped or delivered in person.
All gold deposits are backed by gold in the exchange’s vault, Bitcoin Magazine reported, though it did not give details on the office’s security system aside from that the office’s entrance is barred and is located next door to their security company.
Gold withdrawals are given out in Royal Canadian Mint 1-ounce gold bars, according to the Quadriga CX website.
As of Thursday, Quadriga CX’s gold/Bitcoin exchange was up and running, with five trades recorded since May 5.
Though Quadriga CX may be the first exchange to change Bitcoin for gold and back in Canada, other similar precious metal exchanges have popped up recently, including Bullion Bitcoin in London and online marketplace Coinabul, where gold as well as silver can be traded for Bitcoin.
For a handy conversion from gold and silver to Bitcoin, check out Ounce.me. As of Thursday, gold is trading at 2.901 bitcoins per troy ounce, while silver’s at 0.043 bitcoins per troy ounce.