The history of the British pound sterling, was as a pound of weight of silver coins known as sterlings. Most of the world’s currencies were linked to gold up until 1972 under different variations of a gold-standard.
Tally has been referred to as a technologically modern use of the the world’s oldest currency. But what are the three tests for what makes a good currency?
- Is it a store of value and does it hold its purchasing power over time?
- Is it a good medium of exchange and can you easily pay people?
- Is it unit of account that people easily understand.
There is no doubt that gold is a superior store of value, as it has thousands of years of history in maintaining its purchasing power.
In our digital age of cashless payments, using gold coins would not be practical, but your Tally bank app seamlessly links into the banking system, enabling you to make payments in multiple currencies including paying people directly peer to peer in Tally, as you would expect with a gold backed bank account.
We think Tally is a superior unit of account than just a digital representation of a weight of gold. Using grammes or ounces of gold would be complicated when you compare to the unit of currency that most people are used to when buying every day items in pounds, dollars or Euros.
As we move further into a world of negative interest rates in traditional currencies, with the European central bank deposit rate recently moving to -0.5%, the demand for gold backed bank accounts like Tally is likely to increase.