CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,995.00
  • ethereum
    ETH$1,585.93
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » London Gold Association (LBMA) To Track Gold Movement Via Blockchain

    London Gold Association (LBMA) To Track Gold Movement Via Blockchain

    Author: Ali Raza

    Last Updated Aug 28, 2019 @ 17:54

    TL;DR

    • London Bullion Market Association (LBMA) recently attempted to find a way to make the movement of gold more transparent and modernized.
    • The use of blockchain technology presented itself as one possible solution, with 26 companies contacting the Association regarding possible cooperation.
    • Instead of choosing a company to work with, the LBMA will create a set of standards that service providers have to meet to become qualified for consultation.

    The continuous embracing of blockchain technology has found yet another big use case in an attempt to solve real-world problems. This time, the new use case includes plans for tracking the movement of gold via blockchain.

    The idea came from the LBMA (London Bullion Market Association), which aims to improve and modernize transparency in the industry. After going through an approval process, various companies will be able to track the movement of gold through the use of blockchain technology.

    Gold that is mined illegally, or used for financing conflicts will be excluded from the plan.

    Tracking gold via blockchain

    The plan was initially created due to reports of US refinery accepting large amounts of smuggled gold. This was reported last year, with claims that the billions of dollars’ worth of gold came to the US from South America.

    Following these reports, LBMA asked for proposals on gold tracking, as well as methods of preventing forgery. The problem was presented to 144 LBMA members, who represent most of the largest banks, gold refiners, and dealers in the world.

    While considering different methods of solving the issue, LBMA members pointed out that multiple other sectors started using blockchain for its various use cases. Some of them include tracking shipments, as well as quick transaction processing, and the ability to store and share vast quantities of data.

    Blockchain’s potential for improving the shipping industry immediately stood out, especially after reports of IBM partnering up with a shipping firm Maersk for this exact purpose. Additionally, several diamond firms such as De Beers already started using this technology for tracking their products.

    After deciding to explore the use of blockchain, the LBMA received up to 26 offers from various companies, including startups and large, established firms alike. Sakhila Mirza, the executive board director at LBMA, did not name any of the companies that contacted the Association. However, sources familiar with the process stated that one of the firms is IBM itself. IBM has yet to comment on this report.

    Companies will have to meet a set of standards to qualify for collaboration

    According to Mirza, LBMA will likely not endorse any particular firm. Instead, the Association plans to create a set of rules that will be applied to technology providers. That way, it will be criteria that decide which companies are to be employed for their blockchain solutions.

    The Association was searching through proposals for several reasons. While it is essential to be able to track gold from mines, bank vaults, jewelry shops, and alike — it also needs robust security features that will be able to prevent forgery.

    It should also be noted that the LBMA did not insist on using blockchain technology. However, most of the responses seem to indicate that tracking the supply chain is the biggest concern, one that can be resolved relatively easily with blockchain.

    For now, the LBMA has to prepare a first draft of the standards that would help decide which companies should be consulted regarding the use of blockchain. The draft is expected to be ready during the first half of 2019. The process of approving these companies, however, is not likely to start until later in 2019.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Ali Raza
    More posts by this author

    Experienced in web journalism and marketing, Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of valuable publications. Contact Ali: LinkedIn

  • bitcoin
    BTC$22,995.00
  • ethereum
    ETH$1,585.93
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!