Issuance of World’s First Blockchain Bond by World Bank

Bitcoin and cryptocurrencies are the latest forms of investment in the current times. The investors trade in these currencies with the help of bitcoin miners. But, some of the people hesitate to trade in bitcoin due to the risk of losing money. To solve the problem of risk in investment, the World Bank has finally decided to issue World’s first Blockchain Bond.

This is one of the major steps by the World Bank in solving the financial issues which run in the current markets. It is also beneficial for the developing nations.

Blockchain Technology

The bank announced on Friday that the issuance of World’s first Blockchain Bond involves blockchain technology. The blockchain process will provide a safer mode of investment, especially in the developing countries.

The meaning of “Blockchain” is the digital public registration of transactions. The reason for introducing this technology in the financial world is to provide a safe and secure way to hedge funds.

Benefits of Blockchain Technology

Many investors in different parts of the world take the risk to trade in Bitcoin and other cryptocurrencies. However, there is also a large part of investors which do not trust Bitcoin trading.

One of the major drawbacks of investment in Bitcoin is that the funds may be used for criminal purposes. There is also uncertainty in the value of cryptocurrencies.

The major benefit of introducing Blockchain technology in World’s first Blockchain Bond is to maintain transparency.

Real-world Money 

Just as in the case of Bitcoin, the trading in World’s first Blockchain Bond will be done in Australian dollars. There is actually no bank which carries out these transactions.

One of the development lenders from Washington has the objective of making AUD 50 million before the finalization on the bond. The value may vary if more investors take interest in the concept of Blockchain Bond.

The World Bank treasurer stated the bank released the first bond in the year 1947. It was really a successful attempt by the bank for the benefits of the investors.

The issuance of World’s first Blockchain Bond is another powerful attempt by the bank to fulfill investor needs and strengthen financial markets.

The World Bank merged the innovative technologies and ideas in issuing this bond. The Commonwealth Bank of Australia plays a vital role in the issuance of this bond. Both the banks were in talks to issue this bond for a year.

Microsoft as the Partner

The World Bank chose Microsoft as the partner. It will provide the safe platform for trading which is free of bugs. The trading in the Blockchain bond is very safe and there are no chances of vulnerabilities.

While trading in Bitcoin and other cryptocurrencies, the investors fear that the information may be leaked to the outsiders. The Blockchain technology will increase the transparency in the transactions. The trading will place in the olden form via normal channels.

There is a procedure for the investors who want to invest in World’s first Blockchain Bond. They have to register themselves for the transactions and later, they will get the cash through normal channels from the blockchain.

Financial Development 

The motto of the World Bank in the issuance of World’s first Blockchain Bond is to eradicate poverty and develop the nation. Every year, the World Bank provides more than $60 billion in bonds for development.

This is a lucrative step by the bank for the developing nations. The idea of Blockchain technology is by the CBA Innovation Lab’s Blockchain Center of Excellence. The deal counsel on the bond issue is the law firm, King & Wood.

An experiment was done to check the authenticity of the blockchain platform. About 17 tonnes of almonds were sent from Sunraysia in Australia to Hamburg, Germany.

Similarly, the first interbank trade transaction also took place involving blockchain technology and smart contracts.

Final words 

The World Bank is soon issuing World’ first Blockchain Bond. It is a wise move by the bank to solve the poverty issues in the developing nations with safer ways. Moreover, this bond is also beneficial for the investors in the future.