Video: Inside the Offshore Vault Where Gold Trades for Bitcoin

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16 April 2014

On the tiny and semi-independent island of Guernsey there is a new type of bitcoin exchange, one that trades ‘digital gold’ for the real thing.

Around 60,000 people live there, around 70 miles off the south coast of England. Although closely linked to the United Kingdom, its direct relationship with the Crown, instead of the government, means that it is virtually autonomous, particularly with regards to financial issues and tax.

The island is home to Bullion Bitcoin, a unique exchange that trades bitcoin for physical gold. Launched earlier this year, the company says it wants to aid the easy transmission of gold while providing a solid store of value for bitcoin. The link between gold and bitcoin also lets the exchange’s users avoid the fiat currency system altogether.

Bullion Bitcoin’s regulated vault operator in Guernsey, Bullion Rock, gave CoinDesk exclusive access to their gold and silver vault.

Reporting and editing by Kadhim Shubber, footage by James Mossahebi.