Israel Diamond Exchange Collaborates with Startup Company to Launch a New Form of Diamond-Based Currency
The Israel Diamond Exchange, also known as IDE, is on the path to creating a whole new, and sparkling kind of currency. In a recent event, the IDE signed up an agreement with CARATS.IO, a nascent company. According to the agreement, the entities together will launch a virtual currency which will be backed by CDC diamonds, CDC standing for CARATS.IO Diamond Currency.
CARATS.IO, a startup company deals in Big Data. The company extends a catalogue of Big Data solutions to companies across the diamond and gem industry. The IDE made this agreement public during an announcement made soon after the deal was signed.
About the new currency, already all sorts of interesting factoids are going around on the Internet. However, from the horse’s mouth, this new currency will be valid only on diamond investments, which is to say, only IDE is the sole organization that will trade in this currency, and it will only be exchanged for investments made on diamonds. That sorted out, the people are hopefully relieved for whatever else they are ready for, it’s not a new currency already.
IDE has explained all rules that apply to the use of its new currency. Trading in this particular currency will be in seamless consistence with the index that is maintained by IDE insiders. The said index broadcasts all activities inside the Israeli diamond industry in numeric values.
In response to why IDE ventured into designing a new digital currency, it said that it’s meant to internally boost the trade and revenue inside the bourse.
YoramDvash, the president of IDE, who was available for a comment on its new venture was quoted saying, “For the past several years there have been many attempts to turn diamonds into a viable financial instrument, but none has 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 Israel 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.”
The spokesperson for CARATS.IO, issued a statement with regards to its new correspondence with IDE. The company said, “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.”
Bit coin and other forms of digital currencies are fast gaining grounds in the global marketplace. In support of this new phenomenon, banking organizations like Barclays, Credit Suisse and HSBC have come together to launch new a new digital cash form to make and settle monetary transactions in 2018