CBA, one of Australia's largest banks, will issue bonds on behalf of the World Bank that will be created, transferred and managed through a blockchain platform.
The new Bond-I will be issued directly by the World Bank in Washington and the CBA in Sydney. Also involved in the development of blockchain bonds will be the Victorian State Treasury, asset management company Northern Trust and QBE, Australia's largest insurance company. Ethereum will provide technical support for such a release and has the largest and most active developer community at its disposal. And Microsoft's Azure cloud computing platform will be used to manage the bonds. Microsoft has already tested the operational capabilities, security and scale of the Ethereum platform and was pleased.
"The use of decentralized technology will improve the efficiency of financing for underdeveloped countries," said James Steen, general manager of international markets at CBA. Each year, the World Bank issues bonds worth US$50-60 billion to support emerging economies. The World Bank, which is mandated to provide loans for investment projects around the world, recognizes that "blockchain can streamline processes between multiple intermediaries and agents of the debt capital market" to improve operational efficiency and regulatory oversight.
"By helping countries harness innovative technologies, we aim to help improve living standards in such countries and promote their economic development. The new blockchain bonds are an important milestone that will help us advise our client countries on the opportunities and risks associated with "disruptive technologies," said World Bank Chief Information Officer Denis Robitaille.
As reported in January 2017, CBA has experience creating blockchain bonds based on smart contracts, having helped develop and test a prototype "crypto bond" for the Queensland Treasury Corporation.
According to https://www.ccn.com
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