Tuesday, January 23, 2018

LBMA formulating plans to put gold trading on the blockchain

With price manipulation of gold and silver prices standard policy in Western markets, one has to wonder why either the Comex or LBMA would be interested in moving their trading platforms to the blockchain.  But perhaps the power and transparency that has made Shanghai the world's biggest gold market in a very short amount of time has something to do with the LBMA's announcing on Jan. 23 that are beginning to look seriously at integrating their gold trade onto the Distributed Ledger platform.

Gold is going digital. 
Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen and melted down by recyclers that’s sold each year to buyers scattered around the world. 
The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding and conflict minerals, according to Sakhila Mirza, an executive board director. 
“Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.” - Bloomberg

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