World Bank Boss Lauds Open Ledger System
The lender successfully deployed the technology back in August.
Blockchain Technology To Play Key In World Bank’s Future
The Head of the World Bank Jim Yong Kim has come out to voice his support for blockchain system. Speaking recently during a forum with IMF, Kim admitted that the institution has not kept pace with the new technology. The forum was organized by the two institutions in Bali, Indonesia.
He cited a number of things the innovative technology can help alleviate. Kim said that such technologies can be beneficial in eradicating poverty and fighting corruption, in return enhancing prosperity. Kim added that such technologies can help the world overcome decades of bad practice such as corruption.
Kim’s comments come after the World Bank deployed blockchain for the first time August to issue a bond. The whole bond was created and managed through a blockchain system.
During the bond issuance, Kim said that the system assisted the bank cut on paperwork and additional costs. He stated that going into the future, the technology will be very useful. He said the institution has stagnated in keeping up with the latest technology in the banking sector. Kim pointed out that if fully adopted, the blockchain will be very beneficial to World Bank customers.
Kim shared the bank’s main goal of establishing a global access to financial services in the next two years. He pointed out that for the goal to be realized, technology will play a major role.
Back in August, the bank partnered with CBA from Australia to issue $73.16 million bonds through blockchain. The deal involves two-year bonds. Reports indicate that the August bond has returned about 2% in interest.
World Bank’s View On Cryptocurrencies
Reacting to the successful bond issuance, Arunma Oteh from the World Bank said that the facility is still exploring ways of integrating new technology in its operations for security and efficiency purposes.
On the whole cryptocurrency adoption debate, Kim had earlier criticised the new money. During an interview last year, Kim highlighted some of the risks linked to bitcoin and other currencies. He said that blockchain was an exciting tool but warned that users must be careful not to exploit it.