Home News Richemont will use blockchain to track diamond supply chains

Richemont will use blockchain to track diamond supply chains

Richemont, a Swiss luxury goods producing holding, announced it will use blockchain for tracking its diamond supplies.

The owner of Cartier brand is looking into the blockchain technology as a possible tool for tracing the diamond supply chain and maintaining its transparency.

Economist Jin Keyu, who is an associate professor at the London School of Economics (LSE) and the member of Richemont’ board of directors, noted that the luxury giant seeks for the means of controlling “parallel markets” and considers blockchain to be one of the most viable options to do so.

“As Cartier’s parent company, we [Richemont] have recently decided to start utilizing blockchain to trace the origin of diamonds, rocks and gold back to the mines or recycling factories. For all the watches we sell, we also hope to (use blockchain) to track their sources to validate their authenticity,” – she stated recently.

The expert also said she has academic interest in blockchain, while also revealing that she plans to join Chinese blockchain startup Ultrain as an advisor in the field of macroeconomics. According to Keyu, blockchain projects are often trying to build their monetary policies from scratch, disregarding the academic research in the field.

“To me, blockchain essentially restructured the entire economic spectrum. … I think it’s extremely interesting because, to solve this broad issue, we need not only microeconomic theories … but also macro ones such as currency, monetary policy and regulation,” – she pointed out.

In an interview to CoinDesk, she also expressed her interest in studying cryptocurrencies as applied to macroeconomic theories with the purpose of creating a stable cryptocurrency that would be suitable for storage and exchange of value.

Apart from luxury goods industry, there are some others which are eager to improve the transparency of their supply chains through the implementation of blockchain. For instance, back in March 2018, BMW concern had reportedly concluded a contract with UK-based Circulor blockchain startup in order to track cobalt supplies and avoid using “unethical” cobalt in production.