The Israel Diamond Exchange said this week it would launch a digital currency backed by diamonds, in a bid to turn the stones into what its president, Yoram Dvash, said would be “a viable financial instrument.”
The new cryptocurrency will be developed together with the Israeli startup Carat.io and will be called CARATS.IO Diamond Currency, or CDC.
“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,” CARATS.IO said in a statement.
The new currency will be based on diamonds purchased and held at the Israel Diamond Exchange, in Ramat Gan, with trading based on an index that reflects activity in the Israeli diamond industry, the IDE said. IDE said it hoped the cryptocurrency would also help boost trade on the bourse.