This year’s International Diamond Week in Israel (IDWI) will be used as a platform to launch two digital currencies.
Backed by diamonds purchased on the Israel Diamond Exchange, the cryptocurrencies have been developed for different aspects of the market by startup business Carats.IO.
One coin, called CUT (Carat Utility Token), is used in B2B transactions between eligible diamond traders, eliminating the need for financial organisations.
The second currency, called Carat, will be aimed at the wider market of financial institutions and digital currency investors.
Carats.IO founder and CEO Avishai Shoushan said the currencies would “elevate” the diamond industry.
“We’re making a meaningful contribution to the diamond industry by simplifying transactions between diamantaires, eliminating financial intermediaries and enabling diamond dealers to hedge themselves against price changes,” he explained.
Shoushan also said using CUT and Carat would help to reduce the “speculative level of investment” on diamonds.
IDE president Yoram Dvash added that both cryptocurrencies would be important for the diamond sector internationally, making diamonds a viable investment channel for a new market.
Technology focus
The launch of the currencies is in line with the IDWI’s technology theme and other recent initiatives introduced by the IDE as part of its goal to “harness technology for the advancement of the diamond industry”.
Among these, includes B2B e-commerce platform Get Diamonds – which is available to international diamond buyers – and an internet marketing centre for bourse members.
The Diamond Tech Innovation Center was also opened to provide a workspace and financial support for start-up businesses.
IDE managing director Eli Avidar told Jeweller that the centre was accessible to any company internationally – including Australians - who dealt with diamond technologies.
Avidar added that the IDWI offered international jewellers and diamond dealers several benefits.
“There will be many companies exhibiting special goods that do not participate in other exhibitions, so this will be an opportunity to meet more companies and compare goods and prices,” he said.
According to the IDE, more than 250 local and international diamond businesses were expected to exhibit from Monday to Wednesday, with the final day of the show scheduled for optional individual meetings.
This year’s IDWI also features a dedicated section for high-end jewellery manufactured by Israeli diamond businesses.
Dvash explained that last year’s trade show “significantly exceeded expectations” both in the number of buyers and their locations.
“We had buyers from more than 20 countries, many of them first time attendees. We are confident that in 2018 there will be even more,” he said.
The 2018 IDWI, organised by the IDE, will be held from 5 February to 7 February in Tel Aviv.
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