London Bullion Market Association (LBMA) to Put Gold on the Blockchain
Gold Could Soon Be Tracked Using Blockchain Technology
It is clear that blockchain technology continues to expand in many different industries. This time, the London Bullion Market Association (LBMA), plans to help modernize and improve transparency in the industry. According to Reuters, the main intention is to use blockchain technology to track gold movement around the world.
The technology behind Bitcoin has been embraced by several industries. With it, the gold supply industry can be improved by excluding from the global supply chain metal that is illegally mined or traded.
This is quite important. As per the report, the decision has been taken when a U.S. refinery accepted billions of dollars’ worth of gold that were smuggled from mines in South Africa. This is why the LBMA asked its members to suggest different proposals and improve the situation in the market.
It is important to mention that De Beers has also created a system known as Tracr that aims at tracking diamonds using blockchain technology. This would clearly have an impact in clear the supply chain of imposters and conflict minerals. Until now, it has proven to be very effective.
Similar blockchain systems have also been embraced by other companies such as JD.com. These systems allow tracking specific goods that might be contaminated. This would reduce the number of intoxicated people and allow buyers to know from where their products exactly come from.
Furthermore, IBM has also partnered with Maersk so as to create a blockchain trading platform for the shipping industry.
According to Sakhila Mirza, LBMA has received 26 different proposals from both start-ups and large financial firms.
On the matter, Mirza said:
“We need to set up criteria and standards that help us understand what is a credible blockchain solution. Once those have been appropriately established, the result would be a selection of service providers that meet the minimum standards.”
According to Mirza, they will be releasing a draft for a tracking system during the first half of the next year. The service would be approved later in 2019, almost a year from now.