Gold Tokenization: Will It Be an Alternative to Bitcoin?

The CEO of the Dubai Multi Commodities Centre (DMCC), Ahmed Bin Sulayem, expressed the view that Bitcoin, one of the most attention-grabbing cryptocurrencies in recent times, does not reflect real-world assets. From this perspective, he emphasized the need to explore innovative and digital methods for the tokenization of assets with inherent value, such as gold.

Bin Sulayem highlighted that DMCC hosts 26,000 member companies from 180 countries worldwide and that this extensive network has the potential to support the idea of gold tokenization. While cryptocurrencies open new horizons in the traditional financial world, DMCC aims to benefit from these innovations and integrate them into the gold sector.

Speaking at the "Business and Trade Opportunities in the United Arab Emirates (UAE)" seminar held at the Istanbul Chamber of Commerce, Bin Sulayem pointed out that the idea of tokenizing gold could play an important role in investors' portfolio diversification strategies. This would enable a broader investor base to access gold assets, potentially attracting the interest of both traditional investors and a new generation of digital investors.

Bin Sulayem also stated that the digitization of gold in international markets needs to accelerate, and that these innovations could present significant opportunities not only for financial systems but also for trade. The tokenization of gold has the potential to be positioned as a secure and liquid investment vehicle, while offering a chance to minimize the risks posed by the volatile nature of digital assets like Bitcoin.

The efforts to tokenize gold are progressing under the leadership of organizations such as DMCC and the Gold Council, while the effects of market dynamics and technological developments on this process are being closely monitored. Ahmed Bin Sulayem anticipates that these efforts could lead to a transformation in the financial services sector and aims to be a pioneer in this process.