UAE tries to use blockchain technology to curb the flow of "conflict diamonds" into the global diamond market

Rage Review : The Kimberley Process (KP) has proposed a new blockchain initiative to establish a tamper-proof record of diamond origins to prevent "conflict diamonds" from entering the global diamond market. Dubai, as the world's second largest diamond trading center after Antwerp and London, has a need to track the source of diamonds. It is believed that by establishing a global blockchain committee in Dubai, fair trading of diamonds around the world can be promoted, and other African countries can also enjoy fair diamond trading prices.

Translation: Nicole

The United Arab Emirates (UAE) is considering using blockchain technology to prevent the trade of ‘conflict diamonds’ – diamonds mined in war zones and sold into the market – from entering the multi-billion dollar global diamond market.

The Kimberley Process (KP), an organization established to prevent the influx of “blood diamonds” into the global diamond market, has unveiled a new blockchain initiative that could help create a tamper-proof record of diamond provenance.

He announced the organization’s progress this year, with Chairman Ahmed bin Sulayem publicizing a meeting with the Dubai Blockchain Committee, which aims to establish a blockchain pilot project to oversee KP data.

He was quoted by local publication El País as saying:

We have already introduced the potential of blockchain technology to create a seamless and continuous global process for the KP certification program.

KP has previously used blockchain initiatives to help promote fair global diamond trading. During the UAE's chairmanship of the organization, it has acquired diamond producers in Venezuela and the Central African Republic to support the global trading community. It is obvious that some diamond producing countries, such as those in Africa, have always said that they do not enjoy fair diamond trading prices compared to other diamond exporting countries.

Distributed ledger technology is gaining a lot of attention in the UAE, with the Global Blockchain Council being established in Dubai in February 2016. As a result, we are seeing more conferences, seminars and events around blockchain technology and its future impact on business and finance. More council initiatives will be unveiled in the coming months.

Providing an update on a blockchain pilot project that could help oversee KP data, the group is expected to present a tamper-proof ledger at its annual conference in Dubai in October. Dubai, incidentally, is the world’s third-largest diamond trading center after Antwerp, Belgium, and London.