Brazil to Tokenize Mined Gold Using Blockchain Solution Aug 17, 2022 Aug 17, 2022 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsAugust 17, 2022 by Kelly Cromley

Brazil to Tokenize Mined Gold Using Blockchain Solution

Brazil is currently developing a new policy that would tokenize every ounce of gold produced in that country on a blockchain in order to promote openness and deter unlawful digging. Representative Joenia Wapichana, who proposed the idea, emphasizes that almost 50% of the country’s metal extraction is conducted via illegal means.

As per her, the bulk of this gold originates in the Amazon and accounts for more than fifty percent of Brazil’s total output. Gold mining has a substantial detrimental impact on the ecosystem because the release of chemicals and heavy metals may damage soil, groundwater, and waterways.

The bill notes that these activities are typically associated by mercury poisoning, brutality, and deforestation, as documented in the national and global media and by social movement groups that work for the conservation of the woods and the safeguarding of native rights. The proposal aims to establish fresh regulations governing the purchasing, selling, and trading of precious metal in the country that would be documented on a blockchain.

The legislator continued by stating that the National Mining Agency is mandated to establish a solitary digital system with safe documentation utilizing blockchain technologies to consolidate all information and procedures of mineral processes with the extra digital records and documentation on dealings and sales, allowing for the creation of audit notifications. This will enhance oversight and increase industry openness. About the project’s implementation, neither technical details nor even the blockchain network that would be employed were provided.

Asset tokenization is among the fantastic features provided by blockchain technology. Tokens that symbolize various financial assets, like as commodities, equities, as well as other securities, may be issued and held on open blockchain systems by any firm or organization. Globally, the need for digitized gold is expanding. Paxos Gold (PAXG), the firm’s native token pegged to precious metal, has a market valuation of almost $600 million, while Tether Gold (XAUT), a competitor, has a market cap of $440 million.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.