Wednesday, April 11, 2018

Greg Hunter Interview on Kinesis

We noted earlier that the Allocated Bullion Exchange (ABX) recently announced its new gold backed cryptocurrency initiative they call Kinesis. Greg Hunter interviewed the CEO of the ABX along with Andrew Maguire to get more information on how this is intended to work. Below you can view that interview.


My added comments:  Readers may wonder why we would cover this news given that earlier efforts to initiate a similar cryptocurrency by the ABX were not able to get off the ground. The answer is simple. The ABX has made an announcement that the Indonesian Post Office will be a partner with Kinesis. In addition, they repeat in this interview that an Islamic organization with 100 million members will also partner with Kinesis (see page 20 of the Kinesis blueprint). Also, near the end of the interview, the statement is made the some eastern governments have approached them with interest in participating in Kinesis and it is pointed out that Russia and China are continuing with massive gold purchases.

These are significant claims. If they pan out, they do provide a realistic path for Kinesis to gain enough widescale adoption by the public to become viable (starting in the Eastern part of the world). If that were to happen, the demand for physical gold (and silver) will certainly go up quite a bit because all the money in this system is fully backed by physical gold and silver. The gold and silver markets are fairly tight now in the sense that if only 3-5% of the worlds investment capital were to move into gold and silver, the price would be substantially impacted upwardly.

On top of this, what is being proposed here is truly an alternative monetary system that would operate fully outside the banking system and be backed by physical gold and silver. It is clear that the plan in this system is to entice money into it by offering a yield on gold and silver not usually available. The yield is derived from small transaction fees as the money turns over in transactions using Kinesis as money.

Only time will tell us if all this actually pans out. As noted above, previous efforts to do this by the ABX did not go forward. However, if this does pan out, we would view it as significant news we need to follow here over time. It appears it will be the fall of 2018 before this really gets started up. Currently, the fund raising process is in progress.

Added note (4-12-18): I am advised by reader who is participating in the Kinesis project that a series of additional new announcements by Kinesis/ABX are scheduled to come out fairly soon so we will watch for that news.

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