Work on the pilot project of Gold International Fast Transfer gets under way
Wed Jan 29 2025
The strategy for implementation of the pilot Gold International Fast Transfer (G.I.F.T.) system, the new gold transfer platform created by SML Gold, was presented and discussed at a high-profile, closed-door conference in Abu Dhabi recently.
Among the participants were representatives from Cybastion Institute of Technology, the US-based tech company specialising in providing cybersecurity and digital infrastructure solutions for African nations, which has been instrumental in putting together the platform.
“We are the enabler of G.I.F.T. – we've worked on its design and architecture, and then on operationalising and putting it into concrete form,” says André Biyong, Senior Vice President of Operations, Cybastion Institute of Technology. “Going forward, we will be the one implementing and maintaining the overall backbone of the system.”
Proof of concept
As conceptualised by SML Gold founder and chairman Fayçal Lalioui, the system is financially viable. According to preliminary forecast studies conducted by Cybastion, G.I.F.T. can manage 50 trillion euros in precious metal assets, with an estimated gross profit of 900 billion euros per year, once the system is operating at full capacity.
The first step towards G.I.F.T. becoming operational is the proof of concept that is to be put into motion in 2025, says Biyong.
“G.I.F.T. is a platform for allowing the exchange of gold – the physical or virtual exchange of gold as a means to pay for services, or as an alternative to direct payments, which depend on currencies and the central bank, etc.,” he explains. “So the proof of concept will be about using two big poles of exchange of gold as initial members of the system, to ensure that the platform as designed is realistic, and can be materialised and operationalised.”
That requires two nations to be enrolled into G.I.F.T. – one a well-known producer of gold, such as the Central African Republic or Burkina Faso, and the other a major hub for buying and exchanging gold.
“We are here in the UAE for the pilot because this is such a big central market for exchange of gold,” he says.
Traceability of gold
At the very heart of the design is the question of how such exchanges can be carried out between member nations enrolled on the platform in a way that is safe, transparent, and documented.
“One of the main concepts in G.I.F.T. is the traceability of the gold that is exchanged,” says Biyong. “Sometimes today, on the black market, gold is exchanged, and states have no control, and the people who are receiving or sending the gold, typically outside of the direct transactions, have no visibility.”
To eliminate such issues, the G.I.F.T platform uses cutting-edge blockchain technology to create an ecosystem of absolute traceability and integrity of gold flows across the globe.
“The blockchain assigns unique digital identification to the physical gold. So, when the property is digitally exchanged, its traceability is ensured across the system,” he explains. “You would know exactly how the gold is exchanged between the different owners as soon as it's entered the system.”
The technology also provides an additional layer of encryption and security to this identification of the precious metals that is crucial to its operability.
“You have to be able to trust the system – that the identification cannot be modified or changed. That's the other aspect of what the blockchain technology brings because it's impossible to create fake identification or to alter an identification once the piece of gold is entered into the system,” he says. “That's why G.I.F.T. relies on this technology.”
Cybersecurity
While blockchain technology provides security on the level of identification of the gold being exchanged on the platform, Cybastion provides the participating nation states with security against cyberattacks at the systemic level, an area in which they specialise.
“Cybersecurity is a must, obviously, because you don't want anyone to be able to compromise the system as a whole. Trust is a must for nations to comfortably enrol globally and use the platform,” says Biyong. “That's why we ensure security at all levels.”
The final step to ensure global scalability and the safe exchange of precious metals on this system will be regulatory compliance. “We will need regulators to recognise the identification that is going to be created for the gold-based assets exchanged between the owners as the official means to identify the gold, for the entire platform to work,” he says.
Vision for the future
In order to complete the proof of concept and fund this full implementation of G.I.F.T., SML Gold has opened its capital by selling 1 per cent of its shares at a valuation of 10 million euros. The company is also working on building strategic partnerships with leading financial institutions such as the Bank of Central African States (BEAC).
The vision shared by its developers is that, once all these pieces fall into place, the platform will provide governments greater control over global gold circulation, just as they currently have over currency and banknotes.
Source: https://gulfnews.com/