The digitization of the gold market could revolutionize the mining sector of Brazil. In the previous month, Brazilian Federal Deputy Joenia Wapichana submitted a bill in the House of Deputies suggesting the utilization of blockchain technology to track domestically produced precious metals and gold.
What does the legislation propose to do?
In a translation from Portuguese, the suggested legislation sets up new parameters for the sale, buying, and transport of gold in the national area and also outlines criminal and administrative offenses and respective sanctions.
What does the legislation include?
According to Wapichana, her bill would also aid combat illegal mining activities within the nation. She highlighted that approximately half of the nation’s gold is mined illegally. She added that the mining activity had given rise to serious environmental problems within the Amazon.
Shed some more light
Wapichana said that these operations are violent, due to mercury contamination, and deforestation, as has been often reported by the international and national press, and by civil society organizations that stand for protecting the forest and the guarantee of indigenous rights.
What’s the status of the illegal mining of gold in Brazil?
Media reports suggest that illegal mining has increased in Brazil since 2019. In addition to environmental problems, artisanal miners have conflicted violently with indigenous tribes safeguarding their land in the Amazon.
What can be done with the legislation?
With the suggested legislation, the National Mining Agency of the government could utilize blockchain technology to implement a single digital system to secure and consolidate all data and processes of mineral operations. Extra documentation and electronic records could be utilized to record sales and transactions.