Blockchain Technology Can Guarantee to Consumers ‘That Their Diamonds Have Been Ethically Sourced’ — Botswana President

Based on the president of Botswana, blockchain is likely one of the modern options that the worldwide diamond trade can use to make sure “blood diamonds” are excluded from formal markets. Utilizing blockchain not solely assures customers but additionally allows them “to make knowledgeable selections and encourages accountable practices all through the provision chain.”

Minimizing Influence on the Surroundings

Botswana president Mokgweetsi Masisi not too long ago touted blockchain expertise as an modern resolution which may help the worldwide diamond trade eradicate so-called blood diamonds. Masisi argued that by utilizing this expertise, the worldwide diamond trade is ready to show to stakeholders that diamonds in formal markets are sustainably sourced.

In his speech at a not too long ago held assembly of diamond trade stakeholders, Masisi argued that the worldwide diamond trade’s goal of attaining sustainable diamond mining requires funding in analysis and innovation. He instructed that when such investments are made, they not solely “decrease the impression on the setting” but additionally assist to take away blood diamonds from official markets.

Remarking on blockchain’s possible impression on the worldwide diamond trade, Masisi mentioned:

“Transparency and traceability are very important parts within the assurances that we as diamond-producing international locations should present to our international clients. Blockchain expertise, with its immutable ledger, can present customers with the assure that their diamonds have been ethically sourced. It empowers customers to make knowledgeable selections and encourages accountable practices all through the provision chain.”

Constructing a Affluent Diamond Trade

Based on a United Nations definition, blood diamonds aka battle diamonds, check with any diamond which is extracted in areas managed by forces against professional, internationally acknowledged authorities. Revenues from such diamonds have prior to now been utilized by some African warlords to fund their actions.

To curb the function of those diamonds in fueling conflicts in Africa, main international diamond-producing international locations together with Botswana agreed to a system of certifying the gems. Nevertheless, greater than a decade after the so-called Kimberley Course of Certification Scheme got here into power, blood diamonds are nonetheless reportedly discovering their approach to international markets.

Nevertheless, in accordance with Masisi, it is just via improvements resembling blockchain that diamond-producing international locations “can handle these challenges and construct a extra sustainable, accountable, and affluent diamond trade.”