Gold Industry Plans to Use Blockchain Technology for Efficient Supply Chain

The London Bullion Market Association (LBMA) and the World Gold Council (WGC) are among the biggest names in the global gold industry. Both players have recently announced a collaboration for the launch of the Gold Bar Integrity Program, an initiative that will use blockchain technology to improve the supply chain of gold bars.

In addition, the program will help the gold industry in fraud prevention. The blockchain-based ledger will register gold bars. Moreover, the technology-driven service will track gold bars throughout the entire supply chain.

According to LBMA, the association is planning to encourage major participants in the gold industry to adopt blockchain technology for the registration and tracking of the entire supply chain of gold.

“This transformative project is the first step towards a more aligned gold industry, where we work together to ensure a more accessible and transparent market. Consumers and investors want to know their gold has been responsibly and sustainably produced and tracing the origin of gold bars will help enforce the highest standards across the entire supply chain. At the World Gold Council, we are committed to addressing barriers to investment such as trust and provenance as this is key to unlocking increased demand for gold,” David Tait, the Chief Executive Officer of the World Gold Council, said.

Blockchain Technology

The use of blockchain technology has jumped substantially across the global corporate sector during the past few years. From cross-border transactions to trade, companies in different sectors have implemented the emerging technology to reduce time-consuming processes. In November 2020, Australia announced its plan to test paperless trade with Singapore through the use of blockchain technology.

The gold market is one of the most valuable markets in the world. LBMA and WGC are planning to digitize the global supply chain of gold bars with the help of blockchain technology.