Event Recap: From Resource to Reserves: the Role of Central Banks in Addressing Artisanal Small-scale Gold Mining

In October, leaders from central banks, government agencies, and development organizations convened in Washington D.C. to explore how central banks can play a transformative role in formalizing artisanal and small-scale gold mining (ASGM) and strengthening domestic gold markets.

The event was chaired by Demetrios Papathanasiou, Global Director, Energy and Extractives Department, World Bank. David Tait, CEO, World Gold Council, opened the session by emphasizing the critical need for accessible processing infrastructure for artisanal miners. He advocated for centralizing official gold buying to steer flows away from illicit actors and toward national reserves. He discussed the role of processing plants to stem the illicit flow of gold. He noted that implementing over 1,700 processing plants at a cost between $5–7 billion would be a modest scale of investment compared to the value of gold they support.

Patricia Peña, Associate Assistant Deputy Minister, International Assistance Partnerships and Programming, Global Affairs Canada, highlighted the multidimensional challenges of risk management in ASGM and stressed the importance of partnerships to build resilient, inclusive, and sustainable supply chains. She called for local value creation through processing and economic development in remote regions. 

I - Shaokai Fan, Global Head of Central Banks, World Gold Council - presented a case for central banks to act as transparent, reputable buyers of domestically produced gold. Purchasing gold in local currency allows countries to grow reserves organically without depleting existing assets, and central banks are uniquely positioned to convene civil society and financial institutions to support miners. In speaking to the group, I also emphasized that every ounce bought officially is diverted from illicit channels and contributes to macroeconomic stability. Finally, I spoke about the London Principles and how they continue to set the standard for domestic purchase programs - new central banks are in progress to become signatories.

Diego Patricio Tapia Encalada, Head of Investments and International Services, Banco Central del Ecuador shared Ecuador’s journey since launching its national mining enterprise in 2012. With over 11,000 ASGM workers, the country has expanded its footprint with offices in Quito, Machala, and soon Zamora. Ecuador’s fair price policy aims to disrupt illegal markets and promote financial inclusion through loans and partnerships with public banks. The Central Bank of Ecuador (CBE) has implemented a rigorous six-step authorization process and signed agreements with agencies to strengthen licensing and due diligence. New initiatives include quality certification, collaborations with Planet Gold, Duke University, and Swiss Better Gold, and the Gold Fingerprint Project.

The event underscored a shared commitment to formalizing ASGM, enhancing transparency, and leveraging central banks as engines of inclusive economic growth.