> Imagine if the the only way to fund a DGC account was to deposit
> physical gold coins!
>
Well Ian, you are overseeing one unique item there.
By depositing actual coins, two things are a given: 
(1) the gold is always available - no M3 here, no electronic money, the
bank MUST have the coins in stock, because withdrawal is in coins.
(2) nobody can decide to set an artificial value for the coins and force a
fiat exchange on withdrawals.

In other countries where gold accounts are offered, making a deposit or
withdrawal is always in the local currency. Imagine the government there
deciding that gold goes at 95 local currency units (althought he real
value is 1000 LCU). As you can not make real gold withdrawals, your gold
account in those locations has in fact not really gold in it - just the
promise that it's kept in gold.

Also, when real coins are involved, there is no interest (given or
charged), nor are there taxes.

The concept of this trial is in fact to show that an economy can grow and
a country prosper without being at the mercy of the interest sharks. After
all, the amount of gold available on the planet is finite and hence
interest can be only paid to a very limited extent, if that.

That said, the scenario for DGC is different. There is little chance that
a government could interfere with gold price setting policies. Obviously
there is also no interest involved and hence them having the gold in
storage and selling 'rights' is workable.
But the aim of a DGC and the Golddinar concept are completely different as
well.

Cheers,
Robert.

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