The World Bank has chosen the Commonwealth Bank of Australia to help set up a new Ethereum bond blockin denominated in Australian dollars. The bond is expected to increase between $ 50 and $ 100 million and the proceeds will go towards sustainable development initiatives.
The World Bank recently declared that it has chosen the Commonwealth Bank of Australia (CBA) to become the sole arranger of a new blockchain bond to be issued on Ethereum. Both entities are willing to launch the bond after consulting investors.
There are not many details about the technical details of the bond itself, but the infrastructure is currently set to run on the Microsoft Azure cloud platform, according to MIT Technology Review .
Microsoft also performed an independent review of the CBA blockchain platform to evaluate functionality and security.
The World Bank has stated through a press release that the interest of investors in the bond was strong, while
Blockchain for Sustainable Development
The World Bank issues $ 50- $ 60 billion dollars in bonds on an annual basis to help finance projects.
As a result, the financial giant has often been at the forefront of financial innovation. The Bank issued the first bond traded globally in 1989, as well as the first electronic bond in 2000.
Now, the World Bank notes that blockchain:
has the potential to streamline the processes between numerous intermediaries in the debt capitals and agents. This can help simplify capital raising and securities trading; improve operational efficiency;
Open to Other Possibilities
The new bond will be officially classified as "bond-I" (Blockchain Offering New Debt Instrument.)
The money raised by the new blockchain bond will go towards efforts related to the reconstruction and development division of the World Bank.
Other project collaborators include Northern Trust, QBE and the Treasury Corporation of Victoria. The legal firm King & Wood Mallesons also provided advice on the legal framework for the issue of bonds and acted as a consultant for the negotiations.
World Bank treasurer Arunma Oteh said the team worked with CBA for a year before being able to launch the first bond operation blockchain.
The CBA said that it chose Ethereum to have "the largest and the most active global development community", but noted how they are open to other options in the future as the word blockchain is developing rapidly.
The CBA also uses blockchain technology for a number of other projects. shipped and tracked down seventeen tons of almonds, accompanied by a group of supply chain leaders, the bank used blockchain, smart contracts and IoT to closely monitor the almond supply chain.
Blockchain has gained more and more attention in various sectors, especially with the continuous development of technology.
What are your thoughts on the World Bank's blockchain development plans? Let us know in the comments below!
Images courtesy of Bitcoinist Archives, Shutterstock.