Brazilian legislation proposes to track gold production through blockchain technology
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(Kitco News) – The digitization of the gold market could revolutionize Brazil’s mining sector, according to a federal politician and indigenous activist.
Earlier this month, Brazilian federal deputy Joenia Wapichana introduced a bill in the House of Deputies that proposed using blockchain technology to track domestically produced gold and precious metals.
In a translation from Portuguese, the proposed legislation: “establishes new parameters for buying, selling and transporting gold in the national territory, as well as defining administrative and criminal actions and respective sanctions.”
According to CryptoSlate.com, Wapichana said her bill would also help fight illegal mining in the country.
Wapichana noted that about half of the country’s gold is mined illegally. She also added that mining had created significant environmental problems in the Amazon.
“These operations are accompanied by mercury pollution, violence and deforestation, which have been frequently reported by the national and international press, and by civil society organizations fighting for the protection of the forest and the guarantee of indigenous rights,” she said in a quote from CryptoSlate.
According to media reports, illegal mining has increased in Brazil since 2019. Along with environmental issues, artisanal miners have come into conflict with indigenous tribes protecting their lands in the Amazon.
With her proposed legislation, the government’s national mining agency could use blockchain technology to implement a single digital system to consolidate and secure all data and processes for mineral operations. Additional electronic records and documentation may be used to record transactions and sales.
While blockchain technology would be a first for Brazil’s mining sector, other nations are embracing the digital revolution. Colombia’s National Land Registry includes a digital cadastral registry that was built on Ripple’s XRPL platform.
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