Israel's Diamond Exchange, one of the three largest worldwide, is launching cryptocurrency in a bid to increase trade and make transactions more efficient and transparent, AFP reported.
The cryptocurrency, to be called Carat, is expected to hit the market around May and will be used by investors and the general public.
“Twenty-five percent of the value of the Carat would be backed by diamonds listed on the exchange in a bid to reassure investors, said Eli Avidar, the exchange's managing director.
Another cryptocurrency called Cut, is being launched this week for use between dealers in a market. Both will be based on blockchain technology, and Avidar believes that “this should make it attractive in comparison to the 1,400 cryptocurrencies that exist globally.”
Israeli exports of rough and polished diamonds amounted to some $7 billion in 2017.
The Israeli exchange also launched a "get.diamonds" index in recent days that serves as a reference and reflects daily market fluctuations.