[eloff]

By putting it in a central database? We already do that. If wager you can probably buy gold online which just changes digital records while the gold doesn't move in the vault.

If you don't trust the bank our government you can put it on a blockchain. It sounds a little silly to us, but remember half the world lives in non free countries. So trust in government and institutions is a big concern. But then why bother with the gold? Proof of work ensures scarcity. So just drop the gold from the equation and now you have bitcoin.