Over the next few years, many Bitcoin clones will start popping up all over the world. Unlike what the virtual currency community has been used to in terms of altcoins, these clones will mimic Bitcoin technology without necessarily using a form of payment attached to it. That being said, the “new E-Gold” might try to steal Bitcoin’s crown, although there is no guarantee of success so far.
E-Gold: Virtual Payments Backed By Gold, However…
The topic of sending payments online in a convenient and secure manner has brought forth many types of platforms over the years. One of the most popular online payment solutions – for a while at least – was E-Gold, a platform that issued their own “currency” backed by gold assets.
It didn’t take long until E-Gold started getting a lot of attention, albeit most of it was from a crowd with less than legitimate intentions. Popular IRC channels, such as #CCPower on DalNet, offered virtual marketplaces where credit card information was bought and sold in exchange for E-Gold, as well as other payment methods such as Liberty Reserve and Western Union.
There was one simple reason why E-Gold was a favorite form of payment, both for legal and illegal purposes: it was anonymous. Even though the “currency” circulating in the platform was essentially fiat currency, there were no names, addresses, or any other personal information tied to E-Gold accounts. Plus, multiple E-Gold exchanges popped up all over the world, allowing customers to easily buy and sell this “virtual” currency.
At its peak, E-Gold was used by millions of users worldwide, but most of them used it for nefarious purposes. Transfers taking place on the E-Gold platform were non-refundable, and lackluster account security led to various accounts being emptied by hackers. This whole ecosystem was eventually shut down by the Department of Justice a few years ago after multiple people pleaded guilty to facilitating money laundering and running an illegal money transmitting business.
But that hasn’t kept E-Gold founder Douglas Jackson from attempting to recreate the ecosystem he once created. He is now consulting for a membership organization called “Coeptis.” The main goal of this new organization is to lure people away from Bitcoin by offering a “global standard currency”, once again backed by gold assets controlled by a trust.
Coeptis Takes The Fight To Bitcoin Virtual Currency
Coeptis has taken a page out of E-Gold’s book and allegedly created solutions to fix the many flaws found in the once popular virtual ecosystem. Complying with existing regulatory requirements is one of the most important aspects for Coeptis, and member identities will be verified before they are given access to trading platforms.
“We believe we will have better anti-money laundering procedures than any other virtual currency business and that we will compare well with the banking industry. One of the advantages of seeing what happened to the e-gold system is we understand where we fell down before.” – Bill Cunningham, Chief Executive Officer of CMO – the company behind Coeptis – told DigitalMoneyTimes.
Due to Douglas Jackson’s prior conviction for running an illegal money transmitter system and aiding in money laundering schemes, he will not have an operational role in Coeptis. However, CMO is still interested in buying a currency system from Mr. Jackson, which will have several resemblances to the once popular E-Gold currency.
Source: Financial Times
Images courtesy of E-Gold, Shutterstock