Blackbill goes back to the history of money and wealth. In the early 70s, money became fiat that moved from being gold-backed to just being a legal tender.

Before this time money was backed by gold and therefore it had some intrinsic value and this system is believed to be way better in transparency as the government could not print as much money as they wish. Blackbill adopted this type of system and improved it by leveraging the blockchain technologies.

In early 2020, Imargin announced that it was working on transforming Blackbill into being a stable coin backed by gold which was to be in the form of bullions. And by mid-march, Imargin introduced the first Blackbill 1oz gold bullion. This 1oz bullion is made of 24 karats of gold.

Around the same period, Imargin CEO Jay Barcollin who is the brains behind Blackbill posted several posts on his Instagram and Facebook pages about the gold bullions and it being money

Imargin owns stake in a mining company

Imargin owns a 50% stake in a new mining company, Lega mining enabling it to produce enough gold bullions to back the coins that are in circulation. From these deductions, it seems that Imargin will always take-in its dividends or mining profits in gold other than fiats.

Advantages of Using gold to back Blackbill

The above chart shows that gold is always appreciating in value and in the past 20 years, gold has appreciated with over 500% which is impossible with fiat currencies. Some of the advantages of investing in gold include:
  1. There is a strong global market demand for gold
  2. Gold is an ideal hedge for financial market risks
  3. Diversification with gold offsets inflation
  4. Gold is a highly liquid asset
How is Blackbill backed by gold

From the Blackbill white paper it is said that upon Blackbill reaching 20 million coins in distribution, 1 Blackbill coin will be pegged to 1 decigram of fine gold. This gold will be store in a private vault in South Africa through Imargin pty ltd. As of June 2020, 1 Blackbill is trading at about 2-3 USD and a decigram of gold is trading about 5.5 USD.