August 10, one of the largest Australian commercial banks Commonwealth Bank of Australia (CBA) received a mandate from the world Bank to issue bonds in the blockchain platform.
According to the technology developed by CBA, investors and banks will participate in the bonding process as nodes of a distributed network. Thus, the Bank intends to increase the efficiency of capital raising and transaction processing. Created by members of the CBA blockchain is a private network developed on the basis of Ethereum. Microsoft has tested the structures and systems of network security.
The press release indicated that the world Bank will issue bonds in the amount of $50 to $60 billion a year to reduce poverty and improve the stability of the global market. The news was commented by the Director of the world Bank Denis Robitaille: “With the new technology of bonding we will be able to explore the possibilities and risks of using blockchain technology”.
At the moment, several financial institutions, including JP Morgan Agricultural Bank of China and BBVA, have already completed testing blockchain systems for the issue of bonds and granting of loans. The technology of distributed databases penetrates almost into all spheres of commercial activity and will soon occupy a leading position on the software market!