Israel’s Diamond Exchange in the city of Ramat Gan is one of the biggest in the world. It’s one of the top three. It got that far by being innovative and thinking far ahead. That said, in the hopes of increasing trade and making transactions more efficient, they decided to launch a cryptocurrency. The cryptocurrency can mean big changes for the successful diamond exchange.
After months of preparation, it has been decided upon that the new cryptocurrency is be called Carat. It’s expected to launch this coming May. It will be open to both investors and the general public. There is also a separate cryptocurrency that is scheduled to launch this week. It has been named Cut. It isn’t open to the general public, just for dealers within the market.
Eli Avidar, the exchange’s managing director has stated that in an attempt to reassure investors, diamonds listed in the exchange will back 25% of the Carat’s value. He further stated that the diamond echanges backing will make it a little more attractive when compared to the other cryptocurrencies that exist globally. Currently it is Bitcoin, Ethereum and Ripple that are sitting on top of the Cryptocurrency world.
With the Carat being backed by the exchange’s diamonds will no doubt comfort any investors that might be speculative to start with. No doubt, stories of the recent heist in Japan and the hard regulations being placed on Virtual Currencies all over the world can make people cautious to invest.
Furthermore, the Israeli Diamond Exchange in Ramat Gan has recently launched a nifty index called “get.diamonds”. It’s primary function will be to showcase market fluctuations on a daily basis.
At the moment, the three main Diamond exchanges in the world are in Mumbai, Antwerp and in Ramat Gan, a city just outside of Tel Aviv. 2017 saw Israeli exports of polished and rough diamonds raise up to $7 billion.