The distributed ledger technology can be used to track the provenance of precious stones and make sure they do not originate from conflict zones funding terrorist and criminal activity.

The plan has been voiced by Ahmed bin Sulayem, the current UAE chair of the Kimberley Process organisation, working to block “blood diamonds” from reaching the world market. According to the project, rough diamonds can be certified with a permanent and tamper-proof record in a blockchain stating their origin.

“We have introduced the possibility of using blockchain technology to create a seamless and continued global process for the KP certification scheme,” said bin Sulayem. 

Earlier at a meeting with the Global Blockchain Council also based in Dubai, bin Sulayem had secured the support of the technology experts to start a pilot project using blockchain to collect statistics on diamond mining and trade.

The Kimberley Process Certification Scheme was established in 2003 to make sure diamond producers from the conflict zones would not use the profit to finance rebel and terrorist organisation. The project has been joined by more than 80 countries and currently monitor 99,8% of the world rough diamonds circulation.

Dubai Global Blockchain Council created in February 2016 consists of 32 members including international IT companies, governmental entities, important banks and blockchain firms. Among the participants are Microsoft, IBM, SAP and Cisco, digital currency exchange Kraken and regional financial organisations such as Dubai International Financial Center, Emirates NBD and Emirates Islamic.

Elena Platonova