Kinesis moves into gold-based digital banking in US

By Sunniva Kolostyak

Kinesis, the monetary system based on gold and silver, is launching a physical Visa card and expanding its platform to encompass real-world utility in the US, becoming a metals-based challenger bank.

The Kinesis system is based 1:1 on allocated physical gold and silver. By launching a physical card, the FinTech is building on the success of its globally used virtual Visa card, and expanding into everyday banking by rolling out an accompanying banking system for the US market.

The US is only the first stop, and Kinesis is planning a wider regional release.

Commenting on the launch, Thomas Coughlin, CEO of Kinesis, said its precious metals-based monetary system is honest, fair, ethical and sustainable, and by integrating Kinesis with modern banking systems, it aims to make it available to everyone.

“It’s not that fiat currencies will become redundant, they already are. Right now with the macroeconomic environment, people are looking for safety & security, so why not keep your money in gold when you can use it day-to-day just like any other currency,” Coughlin said.

“It means you can instantly convert and withdraw what you need, seamlessly in one platform. That’s why we’ve launched in the US first: not only is it a large market with growing inflation, but people are also bought into the value of gold – it’s even legal tender in many states. We’re pleased to have ticked off another successful milestone of our 2020 roadmap, with lots more on the horizon.”

As with the virtual card, the physical Visa can be used to send gold across the globe in seconds with minimal transaction costs. However, because the card has a bank account attached to it, it offers cardholders the functionality of a debit card, including payments, deposits and transfers as well as cash withdrawals.

People can also be paid salaries directly into their Kinesis account and, using the Kinesis Money system, users can store their assets in gold and convert it to cash in seconds when needed. It can receive top-ups of up to $20,000 as opposed to the $500 for the virtual card. This can all be managed in the newly redesigned interface of the Kinesis online and mobile platforms.

The new banking functionality of the system can also facilitate financial inclusion. People can often lose their bank accounts because of poor credit, so this provides an option for everyday financial purposes, such as paying bills, shopping and receiving funds.