Currency Exchage

BitMan101 · May 2016

Hi,

I am curious as to how Bit Gold can deliver payment from gold redemptions in multiple currencies: Euros, Pounds, and Dollars without FX exposure? Unless they match buyers and sellers currencies, is there a spread built into the redemption midpoint that changes depending on which currency you request proceeds in?

Thanks,

Pinkdog · May 2016

Bitman you raise a very interesting point. How does BitGold manage the currency risk? How do they provide the US, Euro and Pounds? Are they.matching Buyers and Sellers? Do they maintain currency pools and hedge? This is an important question for all shareholder and users. Thanks for asking a great question.

79Au197 · May 2016

@BitMan101 @Pinkdog

Gold payments are always between BitGold account holders in gold grams.

Fiat currency can then be redeemed as needed or desired to the GoldMoney Card (in the currency of your card), your bank (in the currency of your bank), or as physical gold. The amount of fiat currency redeemed is based on the BBO price of gold in grams for your currency.

See http://support.bitgold.com/customer/portal/articles/1871471

rohanibuang61 · May 2016

Hi and welcome @BitMan101 I think our Gold in BitGold will change a different direction if Fiat Currencies has lost its faith and reset. This is one of the reason BitGold always shows our deposit in Gold weight(this is permanent) for easy future calculation. Beside our Gold deposit balance in weight there is yo-yo fiat currency too(this is temporary).

nigelmarkdias · May 2016

The Aurum & gold pricing link is useful, @79Au197. Thank you for sharing it.

79Au197 · May 2016

@nigelmarkdias

You are quite welcome.

Ask any question and someone (many someones) will step up to try to answer it. I always try to find and provide support links if possible.

BitMan101 · May 2016

Hi, just for further clarification @rohanibuang61 if I'm initially purchasing gold using CAD or USD, how am I then able to sell my gold and take the proceeds in euros and pounds unless there is a match buyer in that currency? Or does Bit Gold maintain a currency float to manage supply and demand? Thanks again,

BitMan101 · May 2016

Put another way, how is the currency being sourced?

Melanie · May 2016

Hi @BitMan101 - we maintain a float, as you guessed!

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Currency Exchage

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