Brazilian legislation will provide for tokenization of mined gold

A new draft law currently being worked on by the Brazilian government provides for the tokenization of all gold on the blockchain. The procedure should ensure transparency in the industry and prevent irregular mining of precious metals.

The project was presented to the public by Brazilian Federal Representative Joenia Vapichana. She emphasized that almost 50% of precious metals are mined illegally. The Brazilian government is convinced that gold mining has a serious impact on the environment, as it can lead to pollution of soil, groundwater and rivers due to the release of chemicals and heavy metals.

«These operations are accompanied by mercury pollution, violence, and deforestation, as frequently reported by the national and international press, as well as civil society organizations fighting to protect forests and guarantee the rights of indigenous people,» the bill says.

The amendments to the legislation will be aimed at establishing new rules for the purchase, sale and trade of Brazilian gold, which will then be registered on the blockchain. Joenia Vapichana explains: «To improve inspection and ensure transparency in the industry, the National Mining Agency will introduce a single digital system with secure records, using blockchain technology to consolidate all data and processes of mineral transactions.»

Brazil’s political elite has not yet provided any technical details about the project’s implementation, nor about which blockchain network the country will use.