Precious metals traceability
This is the summary of the paper that we have submitted to the RBI on how Shine can help in gold traceability in India.
Making the Indian Gold Industry shine through seamless product traceability using Blockchain technology
Summary:
Rupee outflow of $30billion happens annually due to gold imports for Dore and finished Bullion. Annual estimated gold smuggling sits at around $5billion USD. There is very low gold recycling in the country, with the Gold Monetization Scheme resulting in only 20 tons of gold being deposited through this scheme. Source verification and traceability doesnât exist for Gold in India, due to which there is no Good Delivery Standard or Indian Gold Standard in the country. This has resulted in banks being unable to source gold locally and banks being wary of lending to local refiners and jewellers. Inability for banks to source gold locally has resulted in no bullion banks, hence no gold spot exchange. Due to this cascading effect, gold trade in India is an OTC market with fragmented price discovery.
We propose the use of Blockchain technology to solve the fundamental problem of gold traceability in India. Blockchain provides a fully traceable, tamper-proof, and auditable ledger that can be shared among multiple parties.
The Blockchain would create a closed network for gold movement which would reduce gold smuggling, terror financing. Traceability creates the foundation and platform enabler for Indian Good Delivery Standard; further to the India Good Delivery Standard, this platform creates the basis for enabling banks to source locally, hence propping up the Indian gold market which till now relies on gold imports; This can further lead to the creation of bullion banks, followed by the gold spot exchange. In addition to the above benefits, the blockchain platform described on the paper provides the platform to streamline the data coordination in GMS and provide customers with a great user experience to participate in the GMS.
ISSUED BY: Chainflux.com
REPRESENTATIVE: CEO, Abhinav Ramesh abhinav@chainflux.com; +91 9739579930
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