The Blockchain technology wave seems to be gaining esteem by the day, thanks to its proven reliability and efficiency. This is exactly what has attracted one of the most notable financial entities in the world: The World Bank, popularly known for offering loans to financially challenged countries. The World Bank revealed their confidence in blockchain as it recently created a new blockchain-based bond dubbed “Bondi”, soon to be sold to investors and mandated by the Commonwealth Bank of Australia (CBA) as the arranger.
The CBA expressed how important it was to take a revolutionary step in embracing blockchain technology within the financial markets.
Meanwhile, Arunma Oteh, The World Bank’s treasurer noted “Given the transformative role of emerging technologies, we continue to prudently seek opportunities for us to meet investor needs as well as the needs of our clients,”. The treasurer also expects that investor interest in the new bond will be positively strong, estimating that $73 million could be raised from the sale.
With The World Bank now on the forefront of all matters Blockchain, other financial entities are also expected to follow suit and enter the market. In fact, some central banks are already looking for better ways to use blockchain to settle transactions. Previously, there had been reports that the Thailand Bond Market Association were also contemplating the need to tap into the blockchain technology in issuing bonds. The Thai self-regulatory organization were of the opinion that a new form of bond based on blockchain technology could help speed up the bond-issuing and bond-buying process by up to 300%. Meanwhile, Sberbank CIB, a subsidiary of Sberbank (Russian banking leader), reported in May that it was able to conduct Russia’s first ever blockchain-powered commercial bond transaction.