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Add to Preferred SourcesThe World Bank has chosen the Commonwealth Bank of Australia (CBA) to help organize a new Ethereum blockchain bond denominated in Australian dollars. The bond is projected to raise between $50-$100 million, and proceeds will go towards sustainable development initiatives.
The World Bank issues $50-$60 billion dollars in bonds on an annual basis to help fund projects.
As a result, the global financial giant has often been at the forefront of financial innovation. The Bank issued the first globally traded and settled bond in 1989, as well the first electronic bond in 2000.
Now, the World Bank observes that blockchain:
“Has the potential to streamline processes among numerous debt capital market intermediaries and agents. This can help simplify raising capital and trading securities; improve operational efficiencies; and enhance regulatory oversight.”
The new bond will officially be classified as a “bond-I”.
Money raised from the new blockchain bond will go towards endeavors tied to the World Bank’s Reconstruction and Development division.
World Bank Treasurer Arunma Oteh said the team worked with CBA for a year before they were in a position to actually launch the first blockchain bond transaction.
The CBA said they chose Ethereum due to having “the largest and most active development community globally,” but noted how they are open to other options in the future since the blockchain word is developing at a fast rate.
Blockchain has gained more and more attention across various industries, especially as the technology continues to develop.
The Blockchain for Development Forum welcomes everyone to discuss the potential of this industry-changing technology on November 7 in Cluj-Napoca, Romania.
Original source: Bitcoinist
Published on 13 August 2018