Greetings fellow e-currency users and enthusiasts. I just learned that there is a new gold backed e-currency (aka DGC – digital gold currency) on the block. I first learned about it from an article in the DGC Magazine (btw, I recommend you check it out if you’re into e-currencies), so I hurried over to the Gold-Pay website to learn more about it.
The first notable thing about the website is its plainness. This to me is not necessarily a bad thing. For a website dedicated to providing on type of service the simpler the better in my opinion. The site has the main functions on a left side menu which provides quick access to the two most important things you can do on the site – access your account, or if you’re a new member create a new one.
Now let’s talk a bit about the company itself. The only info that I was able to find regarding Gold-Pay is that they’re a Limited Liability Partnership registered in Panama and that their customer support and marketing offices are located in Costa Rica. I would’ve liked to see some sort of official registration documents from the Panamanian authorities. Their choice of legal structure is quite interesting. I was expecting a corporation or perhaps a Panama PIF (private interest foundation), but I’m no legal expert so I’m sure there is a reason gold-pay’s principals chose to organize themselves in this manner.
What is also interesting about Gold-Pay is that unlike many other e-currencies you can fund your account directly from Gold-Pay. With e-gold and others you have to fund your e-currency account via a third-party e-currency exchanger/market maker. Having said that you can STILL use a third-party exchanger, so you definitely have a choice. The ability to fund your account directly from Gold-Pay is definitely convenient, but personally being a purist I prefer the business model used by e-gold because in my opinion it is more closely approaches the ideal of a pure free market currency. Putting academic issues aside, let’s move on.
Can Gold-Pay be trusted?:
Good question! I wish I could give you a solid answer but unfortunately I can’t. Since this company is so new to the e-currency scene it has – in my opinion – yet to prove itself.
Now in regards to the gold-pay domain name I found this info in the March 2009 issue of DGC Magazine.
The domain Gold-Pay.com was active back in
all of 2004 and early 2005 did you operate the
business at that time?
Actually, we were not aware of the domain names
prior use and nobody with Gold-Pay has any affiliation
with the prior users of the domain.
So you purchased the system or the domain
and added your own system?
We purchased the domain name and built our own
In the end I’m not sure how “safe” I would feel using their services. What I’m looking for is third party validation and auditing and so far I don’t see this offered anywhere. Essentially what I’d like is third party auditing of their gold bullion and also verification of their corporate details.
If you’re wondering whether you can visit their offices, the answer is yes (according to their FAQ). Contact them to make arrangements if you’d like. I for one don’t fee like taking a trip to Costa Rice just to verify this, but I’m sure some of you will – or better yet if you happen to be living there already why not pay them a visit?
Where is the gold?
“In secure private storage in a variety of locations for maximum privacy and security” (taken from their FAQ) I don’t much like this vague answer. For all we know it could be in some basement somewhere, or could be nowhere at all (read in the pockets of the company owners). If they expect us to trust them with our gold I would recommend they provide more details and submit to a third party auditor (just like e-gold and others). Heck, I could start my own gold backed e-currency too and say that the gold is stored is a super secret high security location. Would you trust me? Probably not! – and you’d have every right not to.
To be fair I did notice that in the DGC Magazine interview they did mention that they do have plans to publish an audit of their gold reserves.
Can one add or redeem gold?
Yes. They ask that you contact them for details. Also “Gold-Pay is offering 1 oz gold coins for redemption. The 1 oz coin is produced by G Edward Griffin author of The Creature from Jekyll Island”
All fees are specified in grams (G) of gold, and are based on the weight of gold transferred or held.
- Transaction Fee
- 2%, of transaction amount is deducted automatically from the recipient account upon receipt of the payment.
- Storage Fee
- There are no storage fees or monthly account fees.
- Are there any exchangers that accept Gold-Pay?
- Yes there are a few – 7 are listed on the gold-pay website at the time of this posting. On a side-note there also one lone merchant listed on their website – one called powercookie. Mmmm….cooookie.
- Ok ladies and gents I think that about does it for this posting. Hunger has gotten the best of me and I must hurry now and load up my gold-pay account so I can buy a power cookie.
- For more details on Gold-Pay please see their website.
- I wish you all the best and thanks for reading and visiting my blog.