Multiple well-known organizations in the gold industry have come together to instigate a new coherence program that will use blockchain technology for the supply chain management. With the help of this motion, the market participants will be easily able to verify their metal ingots.
The World Gold Council (WGC) and the London Bullion Market Association (LBMA) have made an announcement on Monday that they are collaborating together to advance an international system that will verify the integrity of gold bars, provenance and the chain of custody.
The system will be based on blockchain technology and will be developed by two companies, namely Peer Ledger and aXedras. The blockchain-based ledger will be utilized in order to track the gold ingots in each and every step, including production, distribution, mining, vaulting and getting purchased by the jewelry manufacturers.
This new Gold bar integrity programme is getting the support of multiple well-known organizations, including Barrick Gold, Asahi, CME Group, Brinks, Argos Heraeus SA, Perth Mint, Royal Canadian Mint, Metalor, Aura Minerals, Newcrest Mining, Hummingbird Resources, etc. According to the WGC and LBMA, the system was initially adopted as a pilot programme, and right now, it will be used across the whole gold industry.
Supply chain management is a category in which blockchain technology excels exceptionally, and more than half of companies listed on Forbes’ 2021 Blockchain 50 list were exceptionally utilizing the distributed ledger technology to resolve their logistics and supply chain-related problems. The American Defense Contractor Lockheed Martin, in April 2021, said that they are operating with blockchain technology for supply chain management in Switzerland.
Because of weak supply chain management in the Gold industry, complexities such as human rights abuse, laundered gold, fake bullion bars, illegal mining, etc., have been arising for a long time. A report published by the Organization for Economic Cooperation and Development propounded how gold producers can stand in the way of serious abuses while working on the mining and production process.