The World Bank (aka International Bank for Reconstruction and Development instructed the Commonwealth Bank of Australia (CBA) to organize the first global bond to be created, allocated, transferred and managed using blockchain technology.
Named in Australian dollars, the Kangaroo bond, keenly called "bond-i" standing for Blockchain offers New Debt Instrument an ironic game-in-reference to Australia's most famous beach – will be released and distributed on a blockchain platform run by the World Bank in Washington and the CBA in Sydney.
ETHEREUM "FIRST CHOICE"
Ethereum was chosen as a blockchain for the project as CBA believes "… currently has the largest and most active global development community and offers the and functionality we need. "  Following the decision, the Bank declares that an independent review of the architecture, security and resilience of the CBA blockchain platform will be conducted by Microsoft.
Although Ethereum is used for this first ever issue , the CBA is fully aware "… other blockchain are developing rapidly and CBA remains open to other options in the future."
The CBA was one of the most visibly active banks in the blockchain space and Sophie Gilder, Head of Blockchain, Innovation Labs, CBA said: " We know that the blockchain has the potential to revolutionize financial services and markets, and this transaction is a significant step towards that future state. "
The World Bank was founded after World War II and is responsible for issuing US $ 50 – US $ 60 billion annually in bonds " as part of its mandate to reduce poverty and promote sustainable development. "
However, many, including the former World Bank lawyer and informant Karen Hudes have questioned the capacity of the organization to reduce poverty by issuing bonds that increase public debt weighs on countries in the absence of policies that contribute to stimulate economic growth.
More from News ICO