The Commonwealth Bank of Australia has announced that it is working on the creation of what its managers describe as the first link transferred and managed entirely in a chain of blocks.
Recently, the Commonwealth Bank of Australia (CBA) made public its association with the World Bank to issue a bonus using a blockchain platform. According to the statement, the bond, called "bond-i" (Blockchain Offered New Debt Instrument) was developed with the contribution of the financial organizations Northern Trust and Treasury Corporation of Victoria, as well as the insurance company QBE.
The platform, designed by the CBA Innovation Block Center of Excellence, will use a private chain of Ethereum operated by CBA and the World Bank.
The World Bank annually issues more than 50 billion dollars in bonds destined to promote development and alleviate poverty. The World Bank treasurer, Arunma Oteh, said:
"Our goal is to continue to leverage innovation for the benefit of markets and our mission to end poverty and boost shared prosperity."
On the other hand, Sophie Gilder, director of blockchain and innovation at CBA, gave some words about the project:
"We know that Blockchain has the potential to revolutionize financial services and markets, and this transaction is a significant step towards that future state. By working in partnership with the World Bank, we were able to find solutions to technical and legal considerations to make this innovative scenario real. "
The first time Gilder mentioned the project publicly was during a conference in December of last year. At that time, the director of CBA said: "We are particularly interested in the financial markets of stocks, bonds, syndicated loans and many other applications where we currently have a very friction economy in which we do not work well."
The CBA announcement does not say when the execution of the project will be accurately issued, it only establishes that the company in question is "in a position to launch our first bond transaction through blockchain".
The fact that the World Bank gets involved with blockchain can result in a massive adoption boost. This entity has a weight in the global economy almost as strong as some known economic sector (war, tourism, etc). And this is not just because the agency is something that the world spends billions of dollars a year, but because it is practically the largest financial organization in the world. So your opinion will always have a significant weight in those who do not yet have complete confidence in technology.
Source: ETHNews
