The World Bank has announced it has raised an additional AUD 50 million for its Kangaroo bond (Bond-i) due August 2020, using blockchain technology.
Through its International Bank for Reconstruction and Development (IBRD), the World Bank says it is the first bond created, issued, traded and managed through its life cycle using blockchain technology.
Details from the publication show Bond-i is part of the World Bank strategy to incorporate emerging technologies for the development and benefit of World Bank’s clients. The organization opines that through the use of DLT or blockchain technology, there is a potential to streamline processes for raising capital and trading securities, improve operational efficiencies, as well as engage regulatory oversight for faster, more efficient, and secure transactions.
See details of World Bank’s first blockchain bond.
This is not a first of World Bank projects in this regard; the organization had setup its Blokchain Innovation Lab since 2017 with the aim to apply the tech for poverty reduction projects, supply chain management, health education, cross-border payments and carbon market trading.
The bank has also partnered with the International Monetary Fund (IMF) to launch a test blockchain quasi-cryptocurrency called Learning Coin (LC) .
What are your thoughts on this? Is the World Bank setting the pace for inclusion of blockchain technology in financial institutions?