E-gold

The e-gold system emerged in 1996. For the first time in modern history, this system, backed by gold, functioned completely independent of conventional banking institutions. The e-gold software guaranteed a secure and efficient method for transmitting value and maintaining records of payment transaction information. Each digital gram of e-gold was backed by one physical gram of pure gold bullion held offline. E-gold transactions were instantaneous, could not be reversed, and cost much less than traditional bank payments. Founders of e-gold sought to create a private gold-based monetary system that included Internet-based transactions which would perform better than national currency. The e-gold system was believed to be operating outside of existing Bank Secrecy Act regulations from 1996 until 2005.