Israel Is Going To Launch Diamond- Backed Cryptocurrency
The Diamond Exchange in Israel is going to launch a new cryptocurrency, which will depend on diamond price fluctuations. The aim is to make operations more transparent.
“The new cryptocurrency will be backed by the diamond turnover on the Israeli market and reflected as an updatable indicator in the salesroom and different retail websites, along with other national and international economic indicators,” Israel’s Diamond Exchange, which is among the top three largest in the world, said in a statement.
Blockchain-based Carat and another digital currency, which goes by the name Cut, are expected to arrive around May and be widely used by investors as well as the general public.
The 25% of this new crypto will be backed by diamonds and commonly perceived as the most reliable assets. This is done for the purpose to attract larger investments. The exchange’s managing director Eli Avidar said it should add its general attractiveness as compared to other global cryptocurrencies.
The mainstream diamond exchanges are based in Mumbai, In Tel Aviv and Dutch city of Antwerp.
During 2017 Israel’s exports of rough cut and diamonds reached around $7 billion.