World Bank Boss Hails Blockchain’s Potential
However, a number of international financial bodies have raised concerns over the threat posed by the cryptocurrency sector. They believe digital currency has a potential causing instability.
World Bank Lagging Behind In Blockchain Adoption
World Bank boss Jim Yong Kim has lauded the blockchain technology. According to Kim, the technology has a huge potential for the financial sector. He pointed out that if the world bank adopts the technology fully, it will play a very vital role in meeting its primary goals.
He made the remarks during an annual meeting with IMF. Kim spoke about cryptos and DLT all as part of the blockchain system. Surprisingly, Kim admitted that the World Bank was not embracing the technology as required. He said that they are yet to embrace technology as a means of helping clients take full advantage of the blockchain.
The World Bank Group is made up of IBRD, IDA alongside other global organizations. Under Kim’s leadership, the World Bank has embraced Blockchain but through the hands-on model. Back in August, he oversaw the launch of a bond backed by blockchain. During his address, Kim highlighted some of the advantages he saw with the bond issuance.
How Blockchain Helped World Bank
Kim said that there was less paperwork alongside a reduction in the cost of transactions. Collectively, he said that all these features are beneficial for the group’s future.
The World Bank president said that emergence of such technologies will go a long way in getting rid of bad traditional practices. He stated blockchain can help eliminate vices like the corruption.
Major Concerns Over Mainstream Adoption Of Cryptos
However, Kim’s opinion contradicts that of bodies such the IMF. IMF is on record stating that the cryptocurrencies sector should not be trusted fully. According to the IMF, cryptocurrencies have the potential of causing instability in the global economy. Early this week, Financial Security Board echoed the same concerns.
Regarding the entire debate of adopting cryptocurrencies, the World Bank has tried to keep off. During his address, Kim seemed not to be swayed by the concerns. He said that the global economy should try and keep up with technological changes.