The World Bank will issue the world's first blockchain bond

The World Bank logo is shown in the Philippine branch of the development lender. Jonathan Cellona, ​​ABS-CBN News / File

WASHINGTON – The World Bank is stepping into the brave new world of digital finance to sell the first bond ever issued entirely using blockchain technology, the bank [19659003] More than just funds, the World Bank intends to gain experience using the blockchain – a public digital transaction register – that could lead to "a gold future" for financial services for developing nations, he said an official of the AFP bank.

Technology is more often associated with cryptocurrencies – like bitcoins – that often raise suspicion about their reliability and volatility, as well as their use for criminal purposes.

But because there is no existing central digital reserve currency bank, the two-year bond block-bond will be based on real-world money: Australian dollars.

The Washington-based development lender aims to raise about $ 50 million (about $ 36 million), although it could be doubl and that if more investors will be involved before the bond is finalized the week of August 20.

"From our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with the exploitation of capital markets for development" Arunma Oteh, World Bank economist, has stated: "Today we believe that emerging technologies also offer transformative, but conservative opportunities to continue innovating, respond to investor needs and strengthen markets."

The transaction is an idea of ​​the World Bank's innovation lab, which worked on the problem for almost a year, along with the Commonwealth Bank of Australia.

The institution also collaborated with Microsoft, which will ensure that the platform and software are "solid, error-free and has no vulnerability to attack," said Paul Snaith, manager of the Treasury Operations Capital Markets of the World Bank.

He said that the use of blockchain could improve transparency, it is public and reduces transaction times as the bonds will be exchanged instantly for cash.

For now, however, investors have yet to register and all cash will be transmitted separately from the blockchain through "normal channels," the old-fashioned way.

The two-year duration of the blockchain bond will provide "a fair number of events and learning opportunities," he said.

© Agence France-Presse

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