Asset backed blockchain cryptocurrency, VIP$ Coin (VIP$), has commenced the exploration of a relationship with the Mexican Government over the prospect of bolstering its economy with decentralised currency.

In an official letter of intent sent to VIP$ Coin’s founders from Mexico’s Secretary of Finance Credit, Dr Rogelio Ramírez de la O, the Minister mapped out his plans to explore the potential of VIP$ Coin as a decentralised cryptocurrency to increase Gross Domestic Product (GDP) and expand the country’s foreign exchange transactions.

The asset backed currency is uniquely placed to integrate with existing economies, trading with traditional fiat currencies due to its vast natural resource asset cap that maintains and stabilises its value, like that of traditional economic gold reserves.

Backed by $3.6T worth of land, energy and other mineral assets, VIP$ Coin will enable governments, institutions or indexes to peg directly to – or trade their fiat currencies on – foreign or domestic exchanges.

VIP$ Coin will work in conjunction with the Ministry of Finance and Public Credit in Mexico, exploring the possibilities of financial collaboration with a view to increasing Gross Domestic Product (GDP) and allowing optional quantitative easing, as well as strengthening Mexico’s participation in international Foreign Exchange (FOREX) markets.

As the eighth biggest economy in the world, Mexico could potentially work with VIP$ Coin to explore the benefits a decentralised currency could bring, focussing initially on the process of quantitative easing to inject capital into the Mexican economy.

Chris Brice, Co-Founder of VIP$ Coin, said the letter of intent from Mexico’s Ministry of Finance and Public Credit is an important indicator for the future of asset backed cryptocurrencies: “For the first time in history, a digital currency other than Bitcoin has been identified as a viable asset to support Governments across the world.

“VIP$ Coin won’t just be a secondary legal tender as is the case with Bitcoin in El Salvador, VIP$ Coin will, in future, take the place of a Government’s gold reserves in maintaining the value of a country’s existing currency.

“This is a major step in the world of decentralised finance. Mexico is one of the first nations to realise the potential of digital assets to replace physical ones, something that has been the ‘standard’ for thousands of years. Today. We’re witnessing the change of banking and public finance as we know it, and we’re excited to be part of the change.”