Brazil is now working on a new measure that would tokenize all gold mined on a blockchain to increase transparency and discourage illegal <a href="https://www.cryptoknowmics.com/news/kosovo-govt-renewal-of-crypto-mining-ban-as-energy-prices-rise/" target="_blank" rel="noopener">mining</a>. Federal Representative Joenia Wapichana, who introduced the initiative, emphasized that around half of the nation's metal mining occurs in illicit activities.

According to the <a href="https://boletimbitcoin.com/2022/08/12/projeto-de-lei-pede-que-todo-ouro-do-brasil-seja-tokenizado-em-blockchain/" target="_blank" rel="nofollow noopener">Brazilian website</a> Boletim Bitcoin, gold mining significantly negatively influences the environment since it can contaminate soil, groundwater, and rivers by releasing chemicals and heavy metals. The Bill explains,
<blockquote><em>"These operations are accompanied by mercury contamination, violence, and deforestation, as has been frequently reported by the national and international press, and by civil society organizations that fight for the protection of the forest and the guarantee of indigenous rights."</em></blockquote>
<h2>New Law To Be Applied To Buying, Selling, And Trading Of Gold</h2>
The idea seeks to create new laws that would be recorded on a <a href="https://www.cryptoknowmics.com/news/decentralizing-the-internet-how-wayru-is-bringing-people-together-with-blockchain/" target="_blank" rel="noopener">blockchain</a> and apply to the nation's buying, selling, and trading of gold. Regarding the project's implementation, no technical information was provided nor specified which blockchain network should be used. One of the excellent services offered by blockchain technology is asset tokenization. Any organization or institution may create tokens that stand in for various financial assets, including commodities, stocks, and other securities, on public blockchain networks.

The market for gold that has been tokenized is expanding globally. The market capitalization of Paxos Gold (PAXG), the company's precious metal-backed token, is currently above $600 million, whereas that of Tether Gold (XAUT), a rival, is $440 million.

New Bill Calls For All Gold Mined In Brazil To Be Tokenized On Blockchain

Brazil is now working on a new measure that would tokenize all gold mined there on a blockchain to increase transparency and discourage illegal mining.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

New Bill Calls For All Gold Mined In Brazil To Be Tokenized On Blockchain

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