Diamante, “a global diamond consortium powered by blockchain technology,” has positioned itself for the release of an asset that will allow the global diamond trade to streamline their operations into a simplified digital supply chain. Transitioning the diamond industry to blockchain technology should allow for more productive due diligence and record keeping. The blockchain can store data – thus allowing institutions, customers and brokers to identify and vet each participant.
The transparency potential enabled by this move may prove pivotal in diminishing the attractiveness of precious gems as a tool for money laundering and terrorist financing.
The gem and jewelry industry is one of the oldest in the world, and diamonds are probably the most coveted precious stones in the market. However, the sector has been mainly run on not-very-transparent traditional ways and sustained by backroom handshakes. Marked by minimal documentation, these two traits have presented diamonds as a favored vehicle for financing crime and laundering money.