Brazil wants to tokenize gold and use blockchain
Economy

Brazil wants to tokenize gold and use blockchain

Joanna Wapichana, a member of the Brazilian Chamber of Deputies, proposed tokenizing gold and using blockchain to stop illegal mining and selling of this precious metal.

Vapichana believes that the country should be able to account for all gold mining activities occurring on its territory. This bill introduces new legislation that aims to regulate transactions with precious metals as well as their transportation.

This bill will also be used to combat illegal mining in the country.

The legislator pointed out that half of the country’s gold is illegally mined. She also noted that illegal mining has worsened the environmental impacts of the mining industry.

These operations are often accompanied by violence, mercury pollution, and deforestation. This has been reported frequently in national and international media, as well as civil societies organizations that fight for the protection of the forest and guarantee rights to indigenous peoples.

Vipassana suggested that a single blockchain-based system be created, where information about the gold mined will be entered and its sale is made. The deputy said that it was necessary to amend the laws of the country to achieve this.

This summer, the Central African Republic government (CAR) also proposed the idea of a tokenizing natural resources. This will allow foreign investors to invest in the country and increase the adoption of crypto assets. Circle CEO Jeremy Allaire stated that asset tokenization would gain popularity in the next few years as it is an efficient way to increase liquidity.

Brazil wants to tokenize gold and use blockchain
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