The London Association of participants of precious metals market (LBMA) plans to modernize and increase the transparency of the supply chains of gold using blockchain technology.

As reported by Reuters, LBMA in March appealed to its 144 members, including the world’s largest gold mining companies, banks and brokers, with proposals for improving the tracking of gold and to prevent deception in the market. It happened once in the past year, it became clear that us refinery took on billions of dollars of gold caught smuggling from South America.

As a result, the Association received 26 proposals from companies, including startups and tech giants, said the Director of the Executive Board of the LBMA of Sahil Mirza (Sakhila Mirza).

She refused to list the company’s data, but confirmed that among them, IBM is one of the world leaders in exploring new technologies.

It is noteworthy that the LBMA did not put a mandatory condition of application of the blockchain, but more than 20 of the 26 proposals received based on the technology of the distributed registry.

LBMA looking for a solution that will help to track the gold from the mines, many of which are located in remote areas to Bank vaults and stores worldwide. In addition, it should prevent the counterfeiting of gold bars. Similar blockchain-a platform introduced the international company De Beers, which is engaged in producing, processing and selling of diamonds.

Now the Association has decided to develop criteria and standards on which the selected service provider. According to Sahely Mirza, the first package of standards LBMA will be ready in the first half of next year.