In a groundbreaking collaboration, Pundi X (a global blockchain-powered point-of-sale solution developer) and Scoin (the largest physical gold coin exchange in Africa) have partnered to bring PAXG to the South African market. This move transforms the way people transact in Southern Africa by unlocking access to institutional grade London Bullion Market Association (LBMA) gold via PAXG and giving customers complete exchangeability between digital and physical gold. How exactly will this work in practice, and, most importantly, why will the wide-scale availability of PAXG be such a game-changer for the gold market in the region?

Bridging digital and physical realms

South Africa has long been recognized as a significant hub for gold investments. Geographically, the region has one of the world’s richest gold deposits, with substantial gold reserves in the Witwatersrand Basin. As a result, the nation has a storied history of gold mining, dating back to the late 19th century. The discovery of gold in Witwatersrand in 1886 triggered the Witwatersrand Gold Rush, leading to the establishment of Johannesburg and the rapid development of the gold mining industry. Since then, the asset cemented itself as a major contributor to the South African economy. The country is one of the world’s leading gold producers and the mining industry plays a pivotal role in supporting economic development. Then there was the significance of the Krugerrand on the coin market during the 1960s and 70s.

However, it is no good caring about the past if it does not help us understand the present. Nothing is illuminating the present right now more than the influence of the digital realm on the future of gold. This availability of PAXG within the XPOS platform signifies a pivotal step in merging the longstanding physical realm of gold exchange with the digital world. People can now transition between the digital representation of gold and tangible gold coins seamlessly, exchanging coins for PAXG and vice versa in retail locations. Scoin, using the XPOS system, plays a crucial role in making this interchange easy for people in South Africa, bridging the gap between the digital and physical aspects of gold investments.

Streamlined gold transactions

As a gold coin exchange shop in South Africa, Scoin enhances the user experience by not only simplifying the gold investment process but enhancing the security and efficiency of transactions. Due to the fact that direct peer-to-peer transactions on a blockchain can expedite the settlement process, this partnership is reducing the time between agreeing on the price, transacting and receiving gold in an account and giving the investor the full entitlement of ownership of the gold with PAXG . 

Addressing growing demand

This launch comes at a crucial time, with the recent drop in the US dollar leading to a surge in gold prices. Consequently, investors are seeking refuge in safe-haven assets amid economic uncertainties, increasing the demand for gold. The asset is often seen as a hedge against currency depreciation and economic uncertainty. South Africa faced challenges related to currency volatility and inflation in the past, making gold an attractive option for people seeking to preserve their wealth.

PAXG – which is backed by 1 troy ounce of London Good Delivery physical gold at a 1:1 ratio – provides a modern, safe and technologically advanced way to access physical gold, offering global reach and wide-scale availability across multiple digital payment systems while serving as a valuable diversification tool for investors in South Africa.

Tokenizing gold – navigating the future of assets

The collaboration exemplifies the broader trend of tokenizing real-world assets and navigating the future of asset management. By providing people with the ability to bridge the digital and physical aspects of gold exchange, all three companies showcase their commitment to innovation in the blockchain space. This collaboration represents a significant stride towards making blockchain technology and digital assets accessible globally.

By combining the inherent stability and value of physical gold with the advantages offered by blockchain technology, the investment landscape becomes more inclusive, transparent and efficient, attracting a wider range of investors while mitigating some of the challenges associated with traditional gold investments.

As the demand for gold continues to rise, the availability of PAXG on XPOS directly addresses the evolving needs of people throughout South Africa. The collaboration between Paxos, Pundi X, Scoin, and Ezee Solutions Group highlights a commitment to providing people with innovative and practical blockchain solutions. The introduction of seamless digital-to-physical gold exchange reinforces the position of gold as a powerful investment vehicle in South Africa, setting the stage for a new era in the gold market.