The new age technology – Blockchain has tremendous benefits in place that one can leverage in numerous ways, so why should World Bank Group lag behind? In a recent news story, Jim Young, the president of the World Bank Group elaborated more about the perspective saying that Distributed Ledger Technology (DLT) has strong prospects such that the bank should start using it at the earliest. Kim explained more about the benefits of DLT while addressing at the International Monetary Fund (IMF) and the World Bank’s Annual Meeting organized in Bali, Indonesia on 11th October.
Further speaking to the matter, Kim emphasized as to how to utilize the new age technology that can satisfy the goals of World Bank like, fighting poverty while supporting prosperity. He further said that there is an immense need to have an innovative technology that streamlines an entire ecosystem. Blockchain use case has manifested its benefits in numerous ways and those that are early adopters would better off utilizing the new age tech tremendously.
Amid this, Kim further explained, “We talked about cryptocurrencies, but we think distributed ledger has huge potential and we issued the first blockchain bond in August, where we created, allocated, transferred and managed the entire bond through blockchain technology.”
He further cited the fact saying that “the deployment of blockchain helped the group reduce paperwork and costs, adding that it is something that can be extremely helpful” in the future. And that the bank has not been keeping up with all the latest developments, particularly in a way that would help their customers take advantage of the “great things that are coming out.”
Let us not forget that the World Bank’s main mission is to create the universal access system to financial services by 2020 and that in order to execute the concept at the next level, there has to be a certain technological advancement in place. The blockchain use case can make that possible in a fair and speedy manner.
The story is not confined up to here. The World Bank and the Commonwealth Bank of Australia (CBA) collectively circulated a public bond run on the blockchain platform. Almost $73.16 million are expected to have raised through two-year bonds in 28th August with the return yielded almost 2.251 percent.
With the positive outcome in place, the blockchain use case is poised to change the dynamics of the traditional businesses. Amid this, Arunma Oteh, a treasurer at the World Bank further stated about the concept that “the bank will continue to seek ways to leverage emerging technologies to make capital markets more secure and efficient.”
In October 2017, the World Bank President criticized the digital currencies saying that “the blockchain technology is something that everyone is excited about, but we have to remember that Bitcoin is one of the very few instances [of blockchain’s use in currency]. And the other times when blockchain was used they were basically Ponzi Schemes, so it’s very important that if we go forward with it, we’re sure that it’s not going to be used to exploit.”