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The first digital equivalent of the gold standard for crypto-currencies is here

Utah Software Engineer Mints Physical Bitcoins
Utah Software Engineer Mints Physical Bitcoins
Photo by George Frey/Getty Images

Mina Financial Inc., a privately held Toronto-based financial services innovator, announced today the next generation in crypto-currencies named “Mina”. Minacoin is the first digital currency of its kind to be asset backed, with physical gold bullion held in reserve to support its value.

I had an opportunity to have a Q & A session with co- founders, Melvin Ng and David Gallo, of Mina Financial Inc. via email.

Q. Tell us about Mina Financial and your vision for the gold standard backed digital currency and how will you secure the process?

A. When Minacoins are issued, the receipt from the Bitcoin conversion is cryptographically verified and stored utilizing Bitcoins innovative blockchain technology. Minacoins offer a safe and quick way for people to exchange receipts of gold peer-to-peer. The security is the advantage of the full benefits of gold in addition to the benefits commonly associated with Bitcoin.

Unlike Bitcoin where the value is not stable and considered a risky investment, Minacoin is 100 percent backed by gold and at least 90 percent of the total net assets are always stored in physical gold bullion, David added. Only Bitcoin is used for purchase at this time.

Similar to Bitcoin, Minacoin is capped at 21 million coins to be distributed, and is backed by two 400 ounce bars of gold, totaling $1,050,000 USD, thus pegging Mina coin's value at $0.05 per coin.

Q. Are purchased Minacoin held in “cold storage” offline like Bitcoin?

A. Minacoin can also be held in "cold storage" similar to Bitcoin.

Q. What procedures are you installing for transparency and compliance?

A. One distinguishing feature of this venture, and more broadly our organization, is our emphasis on transparency and regulatory compliance. To this end, we have retained the counsel of KPMG, a globally recognized consulting firm, for auditing purposes.

Q. What is Minacoin’s legal standing in Canada?

A. At the moment, Bitcoin is considered a commodity similar to gold or silver. We suspect that Minacoin will fall in the same category; however we have been seeking further clarification on this issue.

Q. Are there any other particular details that you’d like to release today?

A. Instead of doing a sale, we plan on doing a pre-order and message people via the blockchain once we gain further clarification on the legal status of the coin. It will be posted on the website.

Melvin Ng added: Throughout the last few years Bitcoin and its competitors in the market have opened people’s eyes to the benefits of crypto-currencies and financial transactions through a decentralized network, but not without major hurdles. With the combination of Bitcoin technology and Mina gold bullion, we envision bringing together the best of both the old and new worlds to solve the largest problems associated with previous crypto-currencies.

Mina Financial Inc. was founded by a group of forward thinking Bitcoin entrepreneurs passionate about the future of cryptocurrency. The two original founders Melvin Ng and David Gallo provide a combination of their skills. Melvin Ng has had several businesses since the age of 10. He previously operated Canada’s second largest Bitcoin exchange while pursuing a degree in computer engineering at the University of Waterloo.

David Gallo owns and operates 7L Networks, Inc., a data center and hosting company founded in 2003 and serves a global customer base on its Infrastructure as a Service (IaaS) platform.

To find out more about Minacoin information can be found at their website.