The London Bullion Market Association (LBMA) is planning to modernize and increase the transparency of gold supply chains using blockchain technology.
As Reuters reported, LBMA turned in March to its 144 members, including the world’s largest gold mining companies, banks, and brokers, for proposals to improve gold tracking and prevent fraud in the market. This happened after last year it turned out that the American processing plant took billions of dollars in gold, smuggling from South America.
As a result, the association received 26 proposals from companies, including start-ups and technology giants, said LBMA executive board director Sakhila Mirza.
She refused to list the company’s data but confirmed that among them IBM is one of the world leaders in learning new technology.
It is noteworthy that LBMA did not make the application of the blockchain necessary, but more than 20 of the 26 proposals received were based on the technology of the distributed ledger technology.
LBMA is looking for a solution that will help trace gold from mines, many of which are located in remote areas, to bank vaults and stores around the world. In addition, it should prevent the forgery of gold bars. A similar blockchain platform was introduced by the international company De Beers, which is engaged in mining, processing and selling diamonds.
Now the association has decided to develop the criteria and standards by which the service provider will be selected. According to Sahila Mirza, the first set of LBMA standards will be ready in the first half of next year.
