According to the President of Botswana, blockchain is one of the innovative solutions that the global diamond industry can use to ensure that “blood diamonds” are excluded from formal markets. Using blockchain not only provides consumers with certainty, but also allows them to “make informed choices and encourage responsible practices throughout the supply chain.”
Minimizing the impact on the environment
Botswana President Mokgweetsi Masisi recently touted blockchain technology as an innovative solution that could help the global diamond industry eradicate so-called blood diamonds. Masisi argued that by using this technology, the global diamond industry can prove to stakeholders that diamonds in formal markets are sustainably sourced.
Speaking at a recent meeting of diamond industry stakeholders, Masisi argued that the global diamond industry’s goal of achieving sustainable diamond mining requires investment in research and innovation. He suggested that such investments would not only “minimise the impact on the environment” but also help remove blood diamonds from official markets.
Masisi said of the likely impact of blockchain on the global diamond industry:
“Transparency and traceability are essential components in the guarantees that we as diamond producing countries must provide to our global customers. Blockchain technology, with its immutable ledger, can provide consumers with assurance that their diamonds have been sourced ethically. It empowers consumers to make informed choices and encourages responsible practices throughout the supply chain.”
Building a prosperous diamond industry
According to a United Nations definition, blood diamonds, also called conflict diamonds, refer to any diamond mined in areas controlled by forces opposed to the legitimate, internationally recognized government. The proceeds from such diamonds have been used in the past by some African warlords to finance their activities.
To curb the role of these diamonds in fueling conflict in Africa, major diamond-producing countries, including Botswana, have agreed to a system for certifying the gemstones. However, more than a decade after the so-called Kimberley Process Certification Scheme came into effect, blood diamonds are still finding their way into global markets.
However, according to Masisi, only through innovations such as blockchain can diamond-producing countries “address these challenges and build a more sustainable, responsible and prosperous diamond industry.”