Joe Cavatoni, head of global sales and regional CEO of the World Gold Council (WGC), stated Friday that he believes the gold industry will integrate with blockchain technology to “help the industry standardize reporting.” . Cavatoni spoke about the London Bullion Market Association (LBMA) and WGC’s Gold Bar Integrity Program (GBI), which aims to implement “an international system of integrity, chain of custody and provenance of gold bars”.
Bullion integrity initiative will help investors ‘feel comfortable knowing where the gold is coming from’
Joe Cavatoni, head of global sales and regional CEO of the World Gold Council (WGC), spoke about the gold markets in an interview recently published on Friday. Cavatoni spoke about how gold is used in various products, which is helping to boost demand for the precious yellow metal.
He stressed that one of gold’s industrial use cases includes cancer treatment and gold is an ingredient in products such as iPhones and iPads. GAncient nanoparticles are also used in photothermal therapy, which is often used to kill cancer cells.
Cavatoni also spoke about the WGC’s Gold Bar Integrity Program (GBI), a distributed ledger concept supported by the WGC and the LBMA. Officially announced in March 2022, GBI intends to leverage blockchain technology developed by distributed ledger firms Axedras and Peer Ledger.
Cavatoni believes GBI technology will help monitor gold transactions, gold quality, chain of custody and sourcing. Cavatoni expects to have “some kind of blockchain database construction to help the industry standardize reporting, [in order to] Track and trace the integrity of gold bars and trace them back to sourcing so you can feel good and secure knowing where the gold is coming from.”
While the GBI project is an effort by the LBMA and WGC, Cavatoni noted that a “group of organizations” plan to use the GBI program and tools. When the blockchain program was first announced, LBMA CEO Ruth Crowell stated that the international wholesale of “physical gold depends on trust.”
Crowell emphasized that the Gold Bar Integrity initiative is a game changer for the precious metals sector. “This is a major step forward in promoting transparency for the greater good of the gold industry,” Crowell said at the time. Cavatoni noted during his interview on Friday that the “[gold] The industry needs the trust of the people who want to be a part of it.”
“If trust is a barrier to greater acceptance of gold because some people think it’s better to be off-grid than on-grid, then we’d rather embrace trust and transparency and legitimately grow and move the industry forward.” better,” said Cavatoni. “Nothing we do is going to stop anyone from just taking something [a] physical delivery of gold,” added the WGC head of global sales and regional CEO.
Bullion Integrity Ledger by Axedras and MIMOSI Connect by Peer Ledger
In March, LBMA and WGC said that in the initial phase, both Axedras and Peer Ledger will demonstrate their technologies. The Axedras website reveals that the company has a proprietary blockchain called the Bullion Integrity Ledger (BIL).
The BIL network is a “member-based platform for peer-to-peer interactions” and claims to be decentralized and secure. “[BIL] enables its members to share information according to this unified data standard and record the results of business transactions in an immutable and verifiable manner,” notes the Axedras web portal.
Peer Ledger’s website states that it uses “blockchain technology to solve environmental, social and governance issues in global supply chains.” The company offers MIMOSI Connect, which “provides organizations with a trusted, immutable record of transactions, documents and metrics across their entire supply chain to support responsible supply chain management and due diligence.”
Aside from Cavatonis’ recent comment last week about a group of organizations using GBI, the LBMA and WGC have already listed a number of participating GBI companies. Companies mentioned include CME Group, Barrick Gold Corporation, Brinks, Centerra Gold Inc., Argor Heraeus SA, Asahi, Aura Minerals Inc., Perth Mint, Pro Aurum, Rand Refinery, Royal Canadian Mint and Standard Chartered.
What do you think of the LBMA and WGC Bullion Integrity Program? Let us know what you think about this topic in the comment section below.
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