Blockchain adoption is quickly picking up steam, globally.
In fact, the World Bank is the latest to jump on the bandwagon with a blockchain-only bond.
The bond-i—for “blockchain operated new debt instrument” is a two-year bond from the Commonwealth Bank of Australia. CommBank, QBE Insurance, First State Super, NSW Treasury Corporation, SAFA, the Treasury Corporation of Victoria and Northern Trust are the bond issuers.
This is just the first step in moving bond sales away from a manual process to faster, cheaper automation. This is the first time capital has beenraised from public investors through bond issuance that uses the technology from start to finish.
Arunma Oteh, World Bank Treasurer, notes:
“I am delighted that this pioneer bond transaction using the distributed ledger technology, bond-i, was extremely well received by investors. We are particularly impressed with the breath of interest from official institutions, fund managers, government institutions, and banks. We were no doubt successful in moving from concept to reality because these high-quality investors understood the value of leveraging technology for innovation in capital markets.
According to the World Bank, this will be one of many experiments in will make into the technology. Just last year, the World Bank launched a Blockchain Innovation Lab, as well.
The Bond raised 110 million Australian dollars, or $80 million so far
“What sets bond-I apart from other blockchain projects is that the entire bond process—from creation to allocation and management throughout its two-year life cycle—takes place on blockchain.”
World Bank does not have Interest in Cryptocurrency
The World Bank is now aboard the blockchain bandwagon. However, the organization does not show enthusiasm for cryptocurrencies. At least, not yet. World Bank president, Jim Yong says, “I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.”
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