Copernicus Gold solves Gresham’s Law; launches digital payments system linked to gold

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Copernicus Gold solves Gresham’s Law; launches digital payments system linked to gold

• Using an algorithm that optimizes the amount of gold required to operate a currency system linked to gold, Copernicus Gold has solved the 500-year-old Gresham’s Law, which states that ‘bad money drives out good’

• Anyone, anywhere can transact using a global payments system of digital gold, which is linked to a store of physical gold

06 September 2017 – SINGAPORE – Copernicus Gold offers a reliable global system for gold trade that is simple, cheap and of mass. It provides, for the first time, a solution to Gresham’s Law which states that ‘bad money drives out good.

Gresham's Law can be illustrated as follows: if there are two forms of commodity money in circulation and both are accepted by law as having similar face value, the more valuable of the two will disappear from circulation. For example, from the 1920s to today, fiat currency drove out gold backed currency, simply because a few who could, wanted to own all the gold.

By developing formulae based on a strict mathematical statement of the necessary size of the company’s gold reserve, Copernicus Gold has determined and been granted a patent by the US Patent Office for an algorithm that forms the basis of a global payments system business model, linking a digital asset or currency to a reserve of a commodity such as gold. The algorithm ensures that the reserve of the commodity is at an optimal level to fulfil all incoming orders, as well as to issue, and maintain in reserve, sufficient amount of that commodity, in this case gold, and currencies based on several general requirements.

Professor Vladmir Nikolaevich Frolov, the founder of Copernicus Gold says, “The mathematical model, or algorithm, accounts for the market price of gold, the bullions’ weight and other conditions. This ensures that the amount held in reserve is satisfactory for operational continuity, plus avoids the emission of unreasonably large or insufficient amounts of electronic gold.”

As such, Copernicus Gold has launched a global payments system of digital gold, which is linked to a store of gold bullion in Singapore. The system operates as a cloud-based multi-currency platform that issues digital gold in any measure, enabling anyone, anywhere, to acquire, save or pay with digital gold.

PATENT ISSUED

Copernicus Gold has successfully lodged and been granted a patent for its mathematical model by the US Patent Office. The patent was granted for a “System and method for issuance of electronic currency substantiated by a reserve of assets”. The invention is classified as an electronic currency and particularly, a system for, and the means of, using currency issuance and circulation, where the value of the currency is backed by a material reserve.

GOLD RESERVES

To substantiate the issue of digital gold, Copernicus Gold stores gold bullion in a vault at Freeport in Singapore.

Significantly, the speed at which transactions are made – the faster the circulation of funds – means that less gold is needed for the financial system’s operation.

Rapidly transferring payments offline (into bank accounts) decreases the need for circulating funds, which means less gold is needed and that the risk of failure to pay is avoided. Critically, this also relaxes the requirements of reserves of the commodity, such as gold, or any other commodity, as transactions that occur online take far less time to complete than those of existing payment systems.

In this sense, Copernicus Gold offers a revolutionary system to overcome Gresham’s Law, by providing a currency system that circulates gold.

BLOCKCHAIN

To enable operations, Copernicus Gold uses cutting edge, proprietary private blockchain to hold a transaction and financial instrument ledger with a powerful API that enables secure, transparent and safe real-time transactions at the speed of several hundred transactions per second, with the potential for greater speed.

The transactions are safe because there is no single transaction core in the blockchain. Instead, each node can potentially participate in processing transactions, which protects the system more than any system with a centralised core. Moreover, the authors of the system imposed the strictest known operation reliability and stability requirements on the system.

The company also offers open API that can be integrated into existing transaction systems and will permit fully automated payment settlements in digital gold.

SINGAPORE

Copernicus Gold chose to headquarter its operations in Singapore, as it is one of the world’s strictest jurisdictions for financial trade. The company operates as Copernicus Gold Singapore Pte. Ltd. which is registered as a stored value facility.

The CEO for Copernicus Gold Singapore Pte Ltd, Sergei Vozchikov says, “Copernicus Gold do not offer physical gold in exchange for payment. We do not issue loans or work in speculative markets, nor place client money in any tools. Instead, our system allows for transactions with two types of assets: digital gold and digital currencies (at present USD, EURO, SGD). The digital currency is linked to the currency kept in our bank accounts and similarly, the digital gold is secured by gold bullions kept in a vault in Singapore Freeport.”

“Moreover, your money is secure,” he adds, as “Being based in Singapore, we are required to identify our customers and conduct a financial monitoring procedure in full compliance with the requirements of the supervisory authorities.”

Copernicus Gold is available on the web, or as an iOS application for iPad and iPhone as well as an Android application for tablets and smartphones. The app can operate on any GSM phone as the system uses USSD (Unstructured Supplementary Service Data) to issue authentication codes.

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Notes to Editors

1. Sergei Vozchikov is available for interviews in Singapore in person, via phone or email
2. Direct your requests, along with talking points or questions, to the media contact below

BIOGRAPHIES

Professor Vladimir Nikolaevich Frolov, Founder, Copernicus Gold Vladimir Frolov is a well-known Russian banker, mathematician and economist. He is the founder of Copernicus Gold, along with a few regional banks in Russia, including Bank Severnaya Kazna and Inbank. He is a Doctor of Economics and a Professor.

Sergei Vozchikov, Chief Executive Officer, Copernicus Gold Singapore Pte. Ltd.Sergei Vozchikov is well primed for his role as the Chief Executive Officer in Copernicus Gold, having impressed in leadership roles at Russia’s uppermost banks, including as Regional Director for Russia’s largest private bank, Alfa-Bank, and for the largest bank in Russia with foreign capital, Raiffeisen Bank Russia, where he was head of Private Clients Services. In between those roles, he was Sales and Business Director for Bank Neyva, where he essentially established a banking business from scratch. Sergei graduated from Ural State Technical University as an electronics manufacturing engineer and gained qualifications in Economics and Enterprise Management.MEDIA CONTACT: