Gold Mined In Brazil To Be Tokenized, New Bill Says

  • A new bill was introduced in Brazil by Federal Deputy Joenia Wapichana, which calls for all gold mined in the fifth-largest country in the world to be tokenized on blockchain. 
  • The goal is to increase the sector’s transparency while also making illegal mining more difficult in the country, bringing it close to blockchain adoption.

The largest country in both South America and Latin America, Brazil, law the introduction of a new bill which has been authored by Federal Deputy Joenia Wapichana, the first indigenous lawyer in the country, that aims to tokenize all the gold mined in the country.

The goal of the new bill is to remove the cases of illicit mining that is rampant in the country and also bring transparency to gold mining industry in Brazil by making irregular mining difficult. The step is very crucial for the country because as per Wapichana’s statement, half of the metal mining in the country comes from illegal operations.

“This is practically half of the national production and most of this gold came from the Amazon,”

said Wapichana.

The report from local media outlet revealed that gold mining has a lot of impact on the environment including contamination soil, groundwater, and rivers and hence, tokenization of the same will be very helpful.

The bill explains the need for tokenization of gold mined in Brazil in depth:

“These operations are accompanied by mercury contamination, violence and deforestation, as has been frequently reported by the national and international press, and by civil society organizations that fight for the protection of the forest and the guarantee of indigenous rights.”

Gold purchases to be registered on a blockchain in Brazil

According to the stipulations of the bill, all the gold purchased, sold, or traded in Brazil will be registered on a blockchain. However, it wasn’t revealed which blockhain will be used for the same and the technical details for the same remains open for speculation.

Furthermore, the bill confirmed that the National Mining Agency will “implement a single digital system, with secure records, using blockchain technologies, to consolidate all data and processes of mineral operations with the additional electronic records and documentation on transactions and sales, which will even allow you to create alerts for inspection.”

Similar steps taken by CAR

The Central African Republic (CAR) which recently adopted Bitcoin as legal tender in the nation followed a similar step recently and declared that all the natural resources in the nation will be tokenized. The country also confirmed the launch of the SANGO project which includes the SANGO cryptocurrency and blockchain.

Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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