Blockchain Technology Could Help The London Bullion Market Association Stop Fraud In The Markets

The London Bullion Market Association is looking into whether blockchain can reduce money laundering in the spot markets.

One of the most interesting potential use cases for Bitcoin (and increasingly other cryptocurrencies) is that of a safe haven asset. When people think that the economy is going to take a turn for the worse, they’ve got a handful of options as far as what to do with their money is concerned. Cash is one, but there’s no return available on cash and, indeed, it depreciates in value over time through inflation. Equities are another, but you don’t want to be in equities when the market crashes. Precious metals are another and these are where money tends to flow in bad times – especially towards gold.

Safe Haven Bitcoin

The price of gold rises when the price of stocks falls. In this sense, it’s a safe haven asset, or a risk off asset as some people call it.

There’s been some suggestion that bitcoin could replace gold as a safe haven asset over time, especially at the fringe of the market (i.e. the more technologically savvy individuals).

Now, it seems, the gold market is looking to capitalize on the technology that underpins what many view as its primary competitor in the risk-off space – blockchain.

LBMA Integration

As per a recent Bloomberg report, The London Bullion Market Association, the entity in charge of the biggest market for spot gold in the world, is looking to integrate blockchain technology into its operations in an attempt to add accountability and transparency to the industry and, specifically, in an attempt to crack down on money laundering…

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