WASHINGTON: The World Bank is taking a step into the brave new world of digital finance to sell the first-ever bond to be issued entirely using blockchain technology, the bank announced on Friday.
More than just funds, the World Bank aims to gain experience using blockchain -- a digital public registry of transactions -- that could lead to "a golden future" for financial services for developing nations, a bank official told AFP.
The technology is most often associated with cryptocurrencies -- like bitcoin -- which often raise suspicion about their reliability and volatility, as well as their use for criminal purposes.
But because there as yet is no central bank-backed digital currency in existence, the two-year blockchain bond will rely on real-world money: Australian dollars.
The Washington-based development lender aims to raise about Aus$50 million (about $36 million), although it could be double that if more investors get involved before the bond is finalised the week of August 20.
"Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development," World Bank Treasurer Arunma Oteh said.
"Today, we believe that emerging technologies, equally offer transformative, yet prudent possibilities for us to continue to innovate, respond to investor needs and strengthen markets."
Several solar panels can be seen in this picture. — AFP/FileLAHORE: Pakistan, with a potential of 40 GW of solar...
The screenshot shows the High Commission of Pakistan in Rwanda hosting a webinar on "Exploring the African Market -...
An undated image of gold jewellery displayed at a store. — AFP/FileKARACHI: Gold prices in the local market dropped...
Clare Lombardelli, the OECD’s chief economist. — BloombergLONDON: High flows of immigration into rich countries...
Representational image of growth in economy. — APP FileLAHORE: The normal ingredients of economic growth include...
The logo of Russia's energy giant Gazprom is pictured at one of its petrol stations in Moscow on May 11, 2022. —...