Ethical sources of supply in the sector of precious metals is becoming a decisive factor. With the reduction in gold reserves and shortages their significance is perhaps to grow. The ability to track the gold bars from the origin to purchase, and could prevent theft and contraband from the developing countries. There the extraction of minerals often involves a threat to human life and damage to the environment. The blockchain would guarantee all participants of the supply chain, including miners, reward. In turn, buyers of gold will be confident in the safety of people and the environment.
Looking for a reliable decision on the blockchain
The London bullion market Association (LBMA) is the international authority in the gold industry and is an international trade Association for overthe-counter (OTC) market of gold bullion. It includes the largest gold mining and refineries, as well as the sellers of gold.
In March 2018 LBMA asked its members to propose ways to track gold and the prevention of the proliferation of fakes. According to Reuters, there were 26 proposals, including from startups and IBM. Of the 26 sentences 20 was based on the blockchain.
The Chairman of the Executive Board of the LBMA Sahil Mirza said that now the Association has a reliable idea of the blockchain-the decisions and to standardize requirements to the developers. Once standards are set, will make the selection of service providers.
Tracking system for industry worth a trillion dollars
The selection of the developers is scheduled for 2019. Selected vendor solutions on the blockchain will need to provide a system for monitoring the industry worth a trillion dollars, which will also increase its level of transparency.
The blockchain technology will remove from the market illegal or unethical mined gold. It can also prevent illegal trade, smuggling, and also eliminate the chain of financing of terrorism and military conflicts.
The estimated market capitalization of gold is more than $ 7 trillion. Gold reserves of London is about 8 thousand tons of gold bullion. His reserve London is second only to the US government.
Information prepared in Bitcoinist. More data look at cryptodata.
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