The Israeli diamond and precious stones trade, with $ 23 billion worth of deals in 2017 between local and foreign traders, will launch a virtual currency, Reuters writes.
The Diamond District of Tel Aviv can only be accessed by train, which is on a bridge called the Diamond Bridge. Here every visitor is fingerprinted before entering. If a diamond disappears, the complex is automatically shut down.
Diamond exports of $ 15.5 billion to Israel
Jewelry jewelers in Israel are called special diamonds because they can not compete with Indian small or Chinese specialty jewelers. However, in 2017 Israel's diamond exports amounted to $ 15.5 billion, one fifth of the world market of $ 80 billion.
Most of the transactions, however, are made anonymous, with a handshake and minimum documents, according to Israel's Justice Ministry.
Money laundering and the financing of criminal activities
These troubled waters have often made the FBI and Europol target diamond trade on the grounds that it is a vehicle for laundering and financing of criminal activities.
Well, the diamond scholarship wants to solve this problem by using a virtual coin.
In fact, the scholarship is about to launch two Cryptocoins , but has only presented details about one of these.
The virtual currency will be called Cut
And this will be called Cut, which will only be available to dealers. Traders around the world will receive their digital wallets once they are checked by the stock market.
Each transaction will be checked and stored in the blockchain, which will be public. The identity of the precious stones holders will not be public but, however, the exchange will provide this information to the authorities if they so request.
At this point, bank transfers on diamond trades take several days. Also, traders do not want to give the gem until they see the money in the account, as are the buyers.
However, diamond dealers are waiting to see how the new technology will be regulated.
Bitcoin has lost 70% of its value in the past two months, down from nearly $ 20,000 to $8,904.42 USD as it is now.