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The World Bank is turning to the blockchain to help it raise funds.
The international lender is planning to release what he says is the world's first global blockchain bond, a notable official endorsement of emerging technology.
Blockchain is better known as the technology behind bitcoin and other cryptocurrencies. It serves as a digital record of financial transactions.
The World Bank has hired Commonwealth Bank of Australia ( CBAUF ) to manage the bond, which is expected to increase up to 100 million Australian dollars ($ 73 million) .
Related: Malta wants to become "Blockchain Island"
They called "Blockchain Offering New Debt Instrument" or "bond-i", a nod to Sydney's famous Bondi Beach.
The World Bank follows the German carmaker Daimler, who used blockchain technology to issue a type of German bond in a pilot project last year.
Blockchain could greatly simplify the bond issue process, which has been heavily dependent on physical cards for the past 200 years, according to James Wall, a senior corporate banking executive at the Commonwealth Bank.
Moving the blockchain process could reduce costs and accelerate trading for both bond issuers and investors.
"The potential for this is that it could be a revolution for capital markets," Wall told CNN on Friday. The bank has been experimenting with technology in recent years.
Blockchain has attracted the interest of major banks and technology companies such as Facebook ( FB ) and IBM ( IBM ) . Allows transactions to be executed quickly among people without interference or control by third parties, promising to improve security and reduce transaction costs.
Related: IBM's app store blockchain wants to help banks cut costs
In Australia, the country's stock exchange plans to move to an all-blockchain-based system for liquidate and liquidate securities trading by the end of 2020.
The World Bank, which provides loans to developing countries, said it would issue bonds between $ 50 billion and $ 60 billion a year.
"Our goal is to continue to harness innovation for the benefit of markets and our mission to end poverty and promote shared prosperity," said Arunma Oteh, World Bank economist .
CNNMoney (Hong Kong) First published on 10 August 2018: 5:40 AM ET
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