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Virtual Currencies in Austria: Gold Backed Coin (GBC)

BTCGERMANY (2)If you hear from Austria you just might think about mountains, Mozart, Arnold Schwarzenegger and probably Schnitzel. But not especially about virtual currencies like Bitcoin and Co. But wait!

Gold Backed Coin (GBC)

There are two developers from Vienna who have found the Gold Backed Coin in april this year which has been the first virtual currency fully backed by gold. gbc

The developers of GBC have invented their coin as an alternative in the often unpredictable world of cryptocurrencies. They promise a minimum price guarantee by buying back the GBC if the market price drops too low. A price guarantee in a cryptoworld that is often called the Wild West is a real innovation regarding the whole bunch of pump & dump altcoins out there.

Chris Glatz, one of the developers, talks about the special advantage of the coin: „GBC has, because of its gold backing, an internal value that is stable. It helps you avoid heavy and long lasting price plunges as we will sell back the coins on the market, if its market price drops too much below the gold backed value.“

And also t
he Ministry of Finance and Public Affairs of the French Republic seems to share this view. In a report about the dangers surrounding virtual currencies it mentions Coins that are backed by gold, espacially the GBC, in a positive manner: “(…) the creation of gold-backed virtual currencies, such as Gold Backed Coin (GBC), lessens the financial risk connected to virtual currency price volatility.”

So far 95 GBCs were sold for a price between 0.4 and 0.5 BTC.

But the difference between these type of coins which are backed by a real value (like gold) and those whose value is given through demand is that they are not decentralized and less anonym. Those features that made Bitcoin and altcoins so popular in a world where the state and financial institutes have such a huge impact on the market. So features like a stealth adresse or a decentralized market won`t be found in any time.

But probably this might be the future of virtual currencies regarding upcoming regulations by the states like the BitLicense in New York City.

Bitcoin in Austria

Now you might ask yourself how distincted the whole Bitcoin community is in this small republic in the Alps. The developers of the GBC are from Vienna, Austria. Following their statements the whole Bitcoin scene in Austria isn`t as much formed as in other european states like the Czech Republic, Poland or Germany. Although there was a Bitcoin Conference in Vienna earlier this year, the cryptocurrencies are still looking for adoption as everywhere in the world.

But a look at coinmap.org shows that there are a lot of places where you can spend your Bitcoins, e.g. custom-tailer, hotel or bars.

Verbreitung des Bitcoin
Bitcoin in Austria


For your information:

From August 29 to September 1 its new book building took place.
Interested persons could over the period of four days order the coin on the website (
www.gbc.is). There, they have to choose the price they think is suitable for the coin within a given price span (0.40 to 0.95 BTC). All orders will run through a book building process and the price with the highest order volume will define the book building price. The coin can be traded within the Ripple network against a whole range of other currencies. Detailed information on how this works can be found on the website of GBC.

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