According to a formal release by The Commonwealth Bank of Australia (CBA), the CBA which is Australia’s largest bank has been mandated to issue bonds exclusively using Blockchain technology. This mandate has been given directly by the World Bank which is a sign that the World Bank is in approval of Blockchain technology.
What does this mean?
CBA will have exclusive rights as the sole issued of the world’s first bond that will be created, allocated, transferred and managed using Blockchain technology. The $AUD Kangaroo bond termed as ‘bond-i’ – Blockchain Offered New Debt Instrument will be managed by the World Bank in Washington, USA and CBA in based in Sydney, Australia.
Which Blockchain Platform is used?
Etheruem’s blockchain will be used as strategically speaking, Ethereum has the largest and most active community globally so far. However, CBA has mentioned that other blockchain projects are being watched as CBA is open for new options in platforms in the future. Microsoft was hired to conduct an independent review of the platform to assess the security and resilience. King and Wood Mallesons acted as the deal counsel on the bond issue and also advised on legality.
Dennis Robitaille, the Chief Information Officer of World Bank, outlined the importance of technology in developing the world. He said, “Helping countries transition to technology-led development is key to our goals of reducing poverty and promoting lasting development. This is at the heart of the World Bank’s Innovation Lab—and this pioneering bond is a milestone in our efforts to learn how we can advise our client countries on the opportunities and risk that disruptive technologies offer as we strive to achieve the Sustainable Development Goals.”
The Commonwealth Bank of Australia is becoming a significant influencer for Blockchain based decisions from the banking sector. Two weeks ago, CBA succeeded in trading and tracking a cross-border shipment of almonds using blockchain from Sunraysia, Australia heading towards Hamburg, Germany.
CBA announced plans of spending close to $1 billion on technology development with a majority of it being placed for blockchain technology.
Image Source: “Flickr”