The report of the German non-commercial organization Laboratory of Blockchain Research, studying the application of modern technology for the benefit of society, assessed the impact of the growth of the popularity of tokenized gold on the existing system. According to the words of the co-founder of the laboratory Ingo Fiedler, as the demand for physical gold grows from both the state and private investors, existing platforms for trading gold, operating as a system of partial reservation with a high share of borrowed funds, may crumble under the weight of physical deliveries. Fiedler believes that tokenized gold could pose a structural threat to the modern gold establishment, as it will undoubtedly attract more investors due to its trading advantages and safety benefits.
In recent years, the accumulation and repatriation of funds by central banks have invariably undermined the foundations of the non-distributed model of banking services. The emergence of tokenized gold products, such as Tether XAUt, will accelerate this trend, added Fidler.
Nevertheless, financial analysts predict that tokenization will rapidly capture the financial world, and gold will not be an exception. However, considering the level of leverage in the gold market, the consequences of this shift could be catastrophic.#BTCVSGOLD #Write2Earn #Write2Earn!