In recent news, a metal refinery in Dubai shall be using blockchain technology. As such, metals that are deemed precious shall now also be tokenized before being subsequently traded on the popular platform, DMCC Gold Exchange. The free trade zone developed by the government of Dubai, known as Dubai Multi Commodities Centre (DMCC), is going to build a precious metals refinery that will be based on blockchain. And for this purpose, DMCC has formed a new deal as well.
REIT Development had been the choice for the DMCC as this center has now officially put pen to paper and signed an agreement of sale and purchase with it. As per this agreement, a 100K Sq. Ft precious metals refinery shall be constructed in Dubai.
Metal refinery to be powered by blockchain
The DMCC had submitted a press release earlier today through which stated that the precious metal storage and refinery facility should be the biggest in the entire GCC (Gulf Cooperation Council). The refinery shall also be powered completely by blockchain technology.
As for the location, the refinery will be situated in the Jumeirah Lake Towers region. In regards to which metals shall be mined, gold, rhodium silver, platinum, and palladium have been listed amongst some others. What is even more interesting, however, is that these metals shall simultaneously also be used for the purposes of providing support for stablecoins (the ones that are asset-collateralized) such as GoldCoin, RhodiumCoin, SilverCoin, PlatinumCoin, PalladiumCoin, and so on. Moreover, these coins shall utilize the Ethereum network to function and will also be linked to 1 gram’s current value of the respective precious metal.
As per the announcement, the precious metals-based stablecoins shall be made available for the purpose of trading on the aforementioned DMCC Gold Exchange.
Refinery to be finished before next year’s end
The refinery’s construction is scheduled to be finished before the end of 2022. The DMCC has stated that the refinery shall go a long way towards bolstering the country’s position within the worldwide precious metals community and marketplace.
The COO of REIT Development, Mike De Vries, had claimed that blockchain would end up disrupting the entire precious metals industry. He added, “Blockchain-based technology has the potential of enabling more accurate as well as transparent tracking and monitoring of the precious metals, thereby making sure that there is no chance of ‘dirty gold’ getting included in the circulation (which also simultaneously helps prevent illicit trading)”. Mike De Vries then went on to say that nearly all refineries mining precious metals and storage facilities keeping it will eventually have to adopt blockchain technology by 2025 at the latest.
This refinery is just another example of Dubai and the UAE getting increasingly involved in blockchain technology.