Paxful’s P2P bitcoin trading platform has allowed customers to make transactions for the purchase and sale of bitcoin for physical gold as announced in the company’s blog.
Paxful’s CEO Ray Youssef sees growing interest in gold as a safe investment in light of the economic recession:
“We assessed the demand for buying and selling bitcoin with gold, and it’s surprisingly high. Vendors on the platform expressed a great interest in the addition of gold as a payment method. Gold has been used as a store of value for millenniums and its importance to the economy has rarely dwindled. We believe by adding a gold payment option to the platform we can continue to drive our mission of financial inclusion in places such as Africa, where high gold concentrations will grant them access to bitcoins they may have not have been able to purchase otherwise.”
Paxful considers its offer to be unique – no other P2P market gives such an opportunity to use gold as payment. The addition of yellow metal became a natural course of events against the background of an increasing request from the crypto community.
The new service is available to customers around the world. The physical delivery of gold, which can take “any material form” must be met within 21 days after the execution of the transaction. For this period, BTC will be frozen on the Paxful escrow account.
Users will need to meet certain criteria when completing the KYC procedure. The P2P platform does not set minimum and maximum limits for such transactions.
In the future, Paxful intends to add new “goods and services” as a payment method, but the platform’s CEO did not specify the details.
Recall that similar ideas on trading various goods for bitcoins, including gold, are planned to be implemented on the Hong Kong cryptocurrency exchange AAX.
The most famous exchange that offers the exchange of bitcoin for gold is Vaultoro, which has been operating on the market since 2015 and was the first to offer a similar option. In addition, in May 2018, Vaultoro became the first trading platform in the world to add Lightning Network support for faster and cheaper deposits.