The WGC asked the authorities to introduce checks and balances to ensure the gold bought digitally by the customers is protected
The council has also asked to bring in a transparent way to buy and hold gold digitally
According to WGC, over 120 Mn customers have bought digital gold so far, with nearly 40 Mn customers holding it currently
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International trade association World Gold Council (WGC) has urged the union finance ministry and the Reserve Bank of India to establish appropriate guidelines and regulatory frameworks for the digital gold business in India.
As per ET’s report, the council asked the authorities to introduce checks and balances to ensure the gold bought digitally by the customers is protected.
Inc42 has reached out to WGC’s India CEO Sachin Jain for comments on the development. The story will be updated based on the response.
The council, as per report, has also asked to bring in a transparent way to buy and hold gold digitally. According to WGC, over 120 Mn customers have bought digital gold so far, with nearly 40 Mn customers holding it currently.
Earlier in May, the sharp spike in gold prices reduced the country’s consumption to 562.2 tonnes in 2023, a 6.39% dip from 600.6 tonnes of gold as jewellery in 2022, according to the World Gold Council.
“There is a need to facilitate orderly growth of the digital gold market to protect and promote micro savings in gold through transparent digital gold channels and to deter any unscrupulous fly-by-night operators from misusing the emerging opportunity,” Jain was quoted as saying in the report.
He also said, “Government should consider bringing out appropriate guidelines and regulatory oversight for a digital gold business aligned with the broader economic agenda on digitalisation of assets.”
For the uninitiated, Bengaluru-based Plus Gold is one of the very few fintechs that offers users to purchase digital gold. Besides, a 2024 survey indicates that 14% of Indian women still prefer gold as an investment option over real estate and equities.
All gold assets, physical and digital, are insured and securely stored with Augmont, a digital gold provider and the technology arm of RiddiSiddhi Bullions (RSBL).
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