An article on the cryptocurrency web site coindesk describes a plan by the Royal Mint (first considered in 2016) to use blockchain technology to provide a reliable record
of gold ownership. The "blockchain" is the open ledger technology behind Bitcoin and other crypto-currencies. -Editor
You wouldn't think you'd lose a 1kg gold bar worth more than $40,000.
But during the London Blockchain Summit this week, Nicola Robinson, senior strategic marketing manager at the U.K.'s Royal Mint, which owns 5.4 percent of the global bullion market, did just
Sure, Robinson had handed the bar over to audience members (it was eventually recovered), but the stunt was designed to give a sense of the difficulty inherent in tracking and managing gold, and
to set up how a blockchain might relieve some of that.
While the blockchain can't, obviously, store the physical gold, it has – through the group's Royal Mint Gold (RMG) blockchain – proved helpful in managing the ownership of the
Originally revealed in November 2016 as a way to provide a reliable record of gold ownership and the near instantaneous sale of the precious metal...
And while the blockchain – which was created in partnership with financial market giant CME Group using wallet startup BitGo's technology – is not yet open to the public, it has currently
verified more than 50,000 blocks, Robinson said.
In her eyes, the blockchain could help manage smaller amounts (such as a single ounce) of gold, which some believe would lower the barrier to entry for potential gold investors and increase the
liquidity of the market.
Robinson also used her talk at the blockchain event to hint at the Royal Mint's broader initiatives.
For one, she revealed that the launch of a blockchain-based bullion trading platform was imminent. And touched on the fact that the RMG platform could someday be used to accommodate requests to
prove the provenance of gold and, even more broadly, in the provisioning of collateral of global trades.
Stay tuned. If adopted worldwide, a transaction tracking scheme could limit counterfeiting and perhaps spread into the world of collectibles. -Editor
To read the complete article, see:
Britain's Royal Mint Reveals Details on 'Live' Blockchain for Tracking
Wayne Homren, Editor
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