The world’s largest diamond exchange hopes cryptocurrency can turn diamonds into a viable financial instrument.
The Israel Diamond Exchange (IDE) has announced it signed an agreement with CARATS.IO to launch a digital currency backed by diamonds named CDC (CARATS.IO Diamond Currency).
The developers explain that the new cryptocurrency will be based solely on investments in diamonds purchased at the IDE. Trading will be based on an index that reflects activity within the Israeli Diamond Industry.
IDE President Yoram Dvash said, “For the past several years there have been many attempts to turn diamonds into a viable financial instrument, but none have succeeded. We believe in order to achieve this it is essential to bring in parties from outside the diamond world, as part of the Innovation Center which we have established in the Diamond Exchange. Bringing new investors to the diamond sector in Israel is important for the local industry and for the country. We intend to make use of the incredible expertise that Israel’s high tech industry offers.”
CARATS.IO stated: “The diamond industry can be an attractive investment channel for the many investors in digital currencies. This currency is unique as it will be backed by investments in diamonds, which have steadily appreciated over time. There is a large community of investors in digital currencies throughout the world. By backing this currency with diamonds we are significantly decreasing the speculative level of the investment. Our cooperation with the Israel Diamond Exchange is an important step in making this currency a reality.”
Incorporating about 2800 diamantaires, the IDE is considered the world’s largest diamond exchange.