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(Kitco News) – The digitalization of the gold market could revolutionize Brazil’s mining sector, according to a federal politician and indigenous activist.
Earlier this month, Brazilian Federal MP Joenia Wapichana presented a bill to the Chamber of Deputies proposing to use blockchain technology to track domestically produced gold and precious metals.
In a translation from Portuguese, the proposed law: “establishes new parameters for the purchase, sale and transport of gold in the national territory and defines the administrative and criminal offenses and the related sanctions”.
According to CryptoSlate.com, Wapichana said his bill would also help fight illegal mining within the country.
Wapichana noted that about half of the country’s gold is illegally mined. He also added that mining has created significant environmental problems within the Amazon.
“These operations are accompanied by mercury contamination, violence and deforestation, as has been frequently reported in the national and international press and civil society organizations fighting for the protection of the forest and guaranteeing the rights of indigenous people,” he said in a quote from CryptoSlate.
According to media reports, illegal mining has increased in Brazil since 2019. Along with environmental issues, artisan miners have clashed violently with indigenous tribes who protect their land in the Amazon.
With its proposed law, the government’s National Mining Agency could use blockchain technology to implement a single digital system to consolidate and secure all mining operations data and processes. Additional electronic records and documentation may be used to record transactions and sales.
While blockchain technology would be a first for the Brazilian mining sector, other nations are embracing the digital revolution. Colombia’s National Land Registry includes a digital land registry that was built on Ripple’s XRPL platform.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article disclaim any liability for loss and / or damage resulting from the use of this publication.