A Switzerland-based luxury goods company Richemont, whose structure includes the famous brand Cartier, plans to implement blockchain to empower its supply chain, Moneycontrol reports today. The announcement of this initiative was made by Dr. Jin Keyu, who is a professor of Economics at the London School of Economics. Her research lies in international macroeconomics and the Chinese economy. Last September Keyu was appointed to the board of Cartier owned by Richemont.
WHY IS IT IMPORTANT?
- The implementation of blockchain will let the company reduce its delivery time and costs. The program will automatically calculate the shortest and least expensive route. In addition, it’s possible to track the cargo location at any time.
- The diamond industry remains one of the most attractive for criminal minds. Until now, companies face theft and fraud during the transportation of valuable goods. In Richemont, they hope that the blockchain technology will help to reduce these risks to naught.
Richemont will use blockchain to trace the origins of precious stones or gold to specific mines and recycling facilities, said the professor. The company is also planning to provide the blockchain-based authenticity control to the watches Cartier is known for.
This attempt is very similar to the TrustChain initiative, which was announced earlier in April. A group of gold and diamond firms in collaboration with technological giant IBM will be working in the jewelry supply chain to create a blockchain technology that will track six styles of engagement rings from the mine to the retail shelf. Customers can expect the novel technology by the end of 2018. Companies involved in the initiative include jewelry manufacturer Richline Group Inc, precious metals refiner Asahi Refining, jewelry retailer Helzberg Diamonds, precious metals supplier LeachGarner and a third-party verification provider UL.
As mentioned above, Keyu’s academic interest lies in macroeconomics, the importance of which she stressed several times in terms of the crypto world. Her potential study will address the question of how cryptocurrency may conduct three major roles of a traditional currency, that is its stability, storage of value, and unit of account.
By Nadya Astam