Aug 10, 2018 08:08 UTC
Nov 6, 2018 at 08:14 UTC
Blockchain Bond To Be Created By Bank of Australia Under Orders from The World Bank
The Commonwealth Bank of Australia has been delegated the duty of creating the world’s first ever blockchain bond, by the World Bank. This new bond has been proposed with the intention of simplifying the process of raising capital and trading. ‘Bondi-i’ is the name that has been finalised for this bond, which stands for Blockchain Offered New Debt Instrument and at the same time is an allusion
The bond that is to be created by CBA will be completely “created, allocated, transferred, and managed using blockchain technology.” It will be launched and shared on a blockchain platform which will be jointly operated by Washington and Sydney, the World Bank and CBA, respectively. This bond could really benefit the World Bank in terms of improving ‘regulatory oversight’. An approximate of $50-60 billion in bonds are doled out by the World Bank per year to support economies and sustainable development in emerging countries.
The Executive General Manager of Institutional Banking & Markets International for CBA, James Wall said:
“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”
For the purpose of developing this bond, the two institutions are using a private Ethereum blockchain. However, CBA will not limit its options and will look into other alternatives if need be because it wants to remain open to the other blockchains which are on the rise.
CBA has been made use of blockchain technology in the past, when they delivered a 17 ton shipment of almonds to Europe and tracked the shipment via blockchain.