Jewellery Focus February 2018 | Page 16

MONTH IN REVIEW www.jewelleryfocus.co.uk CRYPTOCURRENCIES Israel Diamond Exchange announces diamond-based cryptocurrencies The group will host a seminar at International Diamond Week to introduce two new currencies. The Israel Diamond Exchange (IDE) will unveil two new diamond- based cryptocurrencies at the next 2018 International Diamond Week in Israel (IDWI) Created by startup Carts.Io, the group will host a seminar introducing its new diamond-backed financial instruments and explain the benefits it could have for the diamond industry. Carats.Io will be creating two separate cryptocurrencies, each backed by diamonds purchased on the Israel Diamond Exchange. One coin called CUT (Carat Utility Token), will be used specifically in B2B transactions between eligible diamond traders, enabling safe peer-to-peer transactions. The second currency, called ‘CARAT’, is meant for the wider market of financial institutions and digital currency investors. Both currencies will be backed by diamonds with a market cap coverage of 25%, significantly reducing the speculative level of investment. Avishai Shoushan, founder and CEO, said: “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. “Moreover, we’re opening the diamond industry to a huge, largely untapped market of financial institutions and cryptocurrency investors.” Yoram Dvash, IDE president, said: “By cooperating with this innovative startup, we’re making diamonds a viable investment channel for a whole new market. This is important for the diamond sector in Israel and the world over”. 16 JEWELLERY FOCUS 1 2 RETAIL High street sees sharpest footfall decline in four years Consumers flocked to online shopping sites in greater numbers than ever. New figures from the British Retail Consortium (BRC) and Springboard show footfall in the month of December suffered its sharpest decline since March 2013. Total UK retail footfall fell by 3.5% compared with December 2016, while the high street saw a sharper drop, down by 4.6%. Shopping centres suffered a footfall decrease of 3.8%, while retail parks saw a marginal drop of 0.6%. This is in contrast to the overall increase of retail sales by 0.6% from 26 November to 30 December, suggesting that more people were shopping online during this period. Helen Dickinson, chief executive of the BRC, said: “In the past, shoppers would have exclusively visited physical stores to ensure stockings were filled for Christmas. Improved delivery options by both purely digital retailers and those with stores and an online offer mean many purchases of last minute gifts are moving online. “The squeeze on discretionary spending also contributed to the decline in footfall. Households had to use their money more carefully, researching products online, rather than heading out to stores to browse.” Diane Wehrle, Springboard marketing and insights director, added: “The poor non-food LFL in-store sales growth clearly reflects the more severe drop in footfall during retail trading hours in December, than over the entire 24 hour period; and is further compounded by a declining store capture rate.” 3 4 5 6 7 8 BLOCKCHAIN TECHNOLOGY De Beers launches diamond blockchain pilot The scheme aims to ensure all registered diamonds are conflict-free and natural, while enhancing efficiency across the sector. De Beers Group has launched a pilot that uses blockchain technology to provide a tamper-proof and permanent digital record for diamonds registered on the platform. Following the success of an initial proof of concept trial, which resulted in a working prototype, a pilot is now underway involving a small number of participants. The pilot will assess how the platform can be integrated with existing systems and processes, in advance of a full launch later this year. Once fully established the blockchain will operate as an open platform, on top of which a range of applications that benefit the industry can be built. Bruce Cleaver, De Beers CEO, said: “We are very excited about this initiative and the benefits it could deliver across the diamond value chain, from producers through to retailers and consumers. “We look forward to continuing to engage with industry stakeholders as we progress development of the platform over the coming months.” Hallmarking in December fell by November 7.4% 11% 723,371 items to to 1,064,578 items (compared with the December) previous November) February 2018 | jewelleryfocus.co.uk