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London Bullion Market Association may employ blockchain technology to stop frauds

Jan 26, 2018 Posted /  4784 Views

London Bullion Market Association may employ blockchain technology to stop frauds

From time now London Bullion Market Association have been fighting from money laundering and frauds in the spot markets. Now the association have come across Blockchain Technology to assist in preventing the scams that they usually witness.

Bitcoin and other cryptocurrencies offer many interesting use cases which positions them as a safe haven asset. There is an alarming number of signs that pose out that economy can take u-turn any time and people are concerned where they will invest for their future. Cash was thought to be one which can be retained, however, with no availability for returns and a high percentage of depreciation it does not present a very good future option.

Then there are equities but nobody wants to be in equities when the market crashes. Now comes the option of the elderly- where they will tell you to invest in precious metals especially gold, which can provide them god money flow in coming times. But out of all current options the ones which at present the greatest opportunity right now are cryptocurrencies, which can be termed a safe haven for investment.

Bitcoin and Cryptocurrencies provide a secured future investment option

If you are one more interested in investing in gold as a more secure option with less of a risk-off option than you need to reconsider. Surely the prices of gold go up with the fall in prices of stocks, but it has been researched now that bitcoin will soon replace gold in this category, particularly at the periphery of the market. The investment prices are directly proportional to the innovations and technological precedents. You can witness the same precedents as it seems, the gold market is searching to capitalize on the technology that supports what many views as its fundamental competitor in the risk-off space – blockchain.

Will this integration help LBMA?

As reported by Bloomberg The London Bullion Market Association, the entity in charge of the biggest market for spot gold in the world, is proposing to combine blockchain technology into its proceedings in an endeavour to affix accountability and clarity to the industry and, particularly, in an effort to decipher on money laundering.

Sakhila Mirza, who at present is at an executive board director position at the LBMA talked to the media and told about his views on the plan. He remarked  

"Blockchain cannot be ignored… Let’s understand how it can help us today, and address the risks that impact the precious metals market."

This is not at all unusual as the likely utilization of blockchain technology to the asset ownership and tracking use cases since great time has been an application encouraged to being a key driver behind mainstream (enterprise-level) adoption.

To witness an organization as big as LBMA proclaim an active transit into the blockchain space is a big deal for the adoption of technology and promotes its aim for global acceptance.

This, however, may not seems as an authentication of bitcoin as an asset and it may be easy to understand that the LBMA at present movement isn’t quite keen on the offering of bitcoin as a risk-off/safe haven asset. Nonetheless,  it’s a step forward for space and one that could facilitate ease the current cynical attitude that’s putting stress on crypto prices across the globe.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Bullion Market blockchain technology future investment

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