The World Bank authorizes the bank to issue bonds using blockchain technology

This article was published on: 08/11/18 2:24 PM

Marcin IwańskiWritten by | blockchain, news, regulations

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According to the press release, the World Bank has mandated the Commonwealth Bank of Australia (CBA) to issue the world’s first blockchain-based bond.

According to the World Bank, this move is expected to bring considerable benefits to the financial markets due to implementing blockchain technology.

According to reports, the CBA will organize the first global bond, which will be “created, allocated, transferred and managed using blockchain technology.” The new debt instrument (Bond-i) offered in Block 9 will be issued and distributed on the Block 9 platform.

Once the system is up and running, it will be managed and issued in a private Ethereum blockchain operated by the World Bank in Washington and the CBA in Sydney. The “Kangaroo Bond” refers to foreign bonds issued in Australia in local currency. Every year, the World Bank issues  $50 bln to $60 billion of bonds for sustainable development in emerging economies. The Commonwealth Bank is Australia’s largest company on the Australian Stock Exchange.

The World Bank describes the implementation of blockchain in the area of treasury bonds and other debt instruments as an aid to developing countries as well as poverty reduction in the world (through the implementation of innovative technological solutions). Also, the World Bank’s bond infrastructure will operate in Washington, Microsoft Azure Cloud.

 

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Image via Shutterstock

 

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Last modified: August 11, 2018

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