According to a press release, the world Bank has mandated the Commonwealth Bank of Australia (CBA), the largest Bank in the country, to organize the bond issue solely on the blockchain.
CBA will become first Bank to issue bonds “is created, distributed, transmitted and managed using the technology of the blockchain”. A new species of bonds (The Blockchain Offered New Debt Instrument or bond-i) will be released and distributed on the blockchain directly under the management of the World Bank in Washington and CBA in Sydney.
For these purposes it is planned to use a private blockchain for Ethereum, but CBA “remains open” to alternative proposals, as “other blackany are developing rapidly”. Microsoft, commissioned by the CBA, carried out an independent review platform to assess its safety and sustainability. CEO at CBA institutional banking and markets James wall, commented on this event:
We believe that this innovative event will demonstrate how the blockchain technology can simplify and, at the same time, to facilitate the work of many participants in the banking sector.
According to the CBA and world Bank to use blockchain technology should simplify capital raising, securities trading, to speed up transactions and “strengthen regulatory oversight”. The world Bank issues bonds in the amount of 50-60 billion dollars a year to support sustainable development in countries with developing economies.
In July, the CBA successfully sent a 17-ton batch of almonds to Europe, using the new blockchain-based platform for tracking cargo from Melbourne to Hamburg, Germany. The platform works on Distributed Bookger (DLT), Internet of Things (IoT) and smart contracts.