The London-based FinTech startup Tally has launched a new currency where each unit is worth one milligram of physical gold.
Founded in 2016, the company now offers customers the chance to deposit money for its own currency, which is also called Tally. Every Tally represents a unit of gold bought at the global wholesale price. The gold is kept in a secure vault in Switzerland.
Users can then tap into their own personal gold reserve by using banking accounts linked to contactless Mastercard debit cards. These cards can be used just like any other Mastercard.
The difference, according to Tally, is that using Tally doesn’t incur any additional fees, no matter where in the world it’s used.
Moreover, the startup’s leadership argues that Tally is less volatile than fiat currencies, which are usually issued by central governments and do not represent any real use value. Instead, fiat money basically represent the value of the trust people put into the government.
Especially citing the pound, which has yet to recover to its pre-Brexit referendum levels, Tally believes using gold reserves will make it less volatile.
Commenting on the new currency, Cameron Parry, CEO and co-founder of Tally, said: “We wanted to offer consumers a stronger form of money, protected from systemic bank risk, 100% insured and designed to hold its value. The solution was a standalone full-reserve monetary platform where the customer’s asset is kept outside of the banking system while seamlessly operating with it.
“And as full-reserve, the customer’s savings are not lent out, moved or invested. Full control of their money stays with the customer. This is what Tally delivers.”
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