Joe Cavatoni, WGC (World Gold Council) executive and regional CEO, stated that blockchain technology has the potential to foster trust in the gold industry. He presented his viewpoint concerning the London Bullion Market Affiliations and WGC’s Gold Bar Integrity Programme. This affiliated programme’s prime objective is to ensure proper integrity in the gold bar and chain of provenance and custody. As per reports, the Gold Bar Integrity will enable the gold traders to feel confident that they are dealing with original yellow metal.
In a recent interview, the CEO offered a brief overview of the varied uses of gold, emphasizing especially its use in merchandise which boosts demand for gasoline for this expensive metal. According to him, the gold industry is perhaps the most booming and profitable; the reason owes to this metal’s phenomenal use cases. When eulogizing gold, the CEO talked about how nanoparticles of gold act as a lifesaving remedy for cancer patients.
Cavatoni’s comments and opinions were about GBI, a distributed ledger concept. Back in March 2022, the Gold Bar integrity programme was initiated; it aims at leveraging blockchain technology, curated by Axendras and Peer Ledger, distributed ledger organizations.
He believes that blockchain technology has got the potential to monitor gold transactions, sourcing and quality adequately. The gold industry often catches the notorious eye of scammers who tamper with this metal’s authenticity and use them in illegal trading. Blockchain is an emerging technology that guarantees security to digital assets minted on it. Thousands of computers called nodes remain interconnected, which keeps a record of each transaction happening in the ecosystem.
Cavatoni attaches enough hopes on GBI to ensure secured gold transactions and proper sourcing so that traders get to know “where gold is coming from”.
Trust is integral to gold trading, which is possible by maintaining transparency, which might sound utopian in the physical gold trading context. As per the World Gold Council Executive, the gold industry, when backed by blockchain technology, can grow in more transparency, thereby eliminating incidences of fraud.
Apart from minting cryptocurrencies, blockchain is widening its reach to a wide array of industries, and its entry into gold trading is expected to prove fruitful.
