Paxful announced the introduction of support for trade between gold and Bitcoin on the platform on April 7
Bitcoin exchange Paxful has added physical gold as a payment option, especially at a time when gold is in short supply. The new feature allows users to buy Bitcoin with gold, and sell Bitcoin for gold.
— Paxful (@paxful) April 7, 2020
Paxful now allows users to transact in gold
According to The Block, Paxful co-founder and CEO Ray Youssef, stated:
“With the recent economic downturn, people still prefer gold as a safe investment, with some already reporting shortages of supply. In a way, it’s even symbolic of trading the gold with virtual gold, aka Bitcoin. There are areas in the world where gold is abundant, but Bitcoin is scarce. So, people in these areas can now be part of the crypto economy too.”
Ray Youssef, Paxful co-founder and CEO
“We assessed the demand for buying and selling Bitcoin with gold, and it’s surprisingly high. So, adding gold was the next natural step for us.”
Besides, Paxful claims to be the only Peer-to-Peer marketplace that provides gold as a payment method. This P2P exchange is also accepting any form of gold. With the announcement, Paxful now facilitates physical trading in 16 different countries.
When a trade is entered, the Bitcoin will remain in Paxful’s escrow until the physical delivery of the gold is confirmed. Transactions must be completed within 21 days of trade being opened on the platform. Paxful will not track or touch the gold traded on the platform. The exchange will take a light-touch-approach where possible.
Looking ahead, Paxful plans to add more goods and services as a payment method, without disclosing specific details.
“Paxful expects gold trading will expand the exchange’s presence in Africa – where high gold concentrations will grant them access to Bitcoins, they may not have have been able to purchase otherwise.”
To comply with anti-money laundering obligations, Paxful requires full verification of identity and address when a user exceeds the total amount of gold transactions of $ 50 in their account history. Users who want to sell gold on the platform may face ongoing due diligence checks. Paxful’s legal and compliance teams have thoroughly reviewed the regulatory implications of supporting gold trading.
Two weeks ago, Paxful announced a partnership with blockchain chain forensic firm Chainalysis to monitor transactions on the platform to identify signs of illegal behavior. Paxful has been planning to add support for transactions between Bitcoin and other goods and assets on the platform for a while.
Therefore, Paxful’s CEO declared gold to be a clear next step for them, emphasizing that the goods have been used as a store of value for millennia. With the recent economic downturn, people still prefer gold as a safe investment with some reports of supply shortages.
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