The fact that blockchain is only a decade old has not hindered its penetration into the digital financial world; not only in the local market but also in the international market. The reach of crypto-asset has gobbled the whole world’s attention. Even the World Bank isn’t left untouched from the blockchain mania. World Bank has instructed the Commonwealth Bank of Australia to issue the world’s first blockchain bond. World Bank claims that the bond is first of its kind to be created, allocated, transferred and managed by blockchain.

The aim of the World Bank is not only to raise funds but also to gain experience in using blockchain based platforms for futuristic trade world. World Bank’s Treasurer Mr. Arunma Oteh quoted, “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.” He further added, “Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development.”

The brainchild of World Bank’s innovation lab aims to raise about Aus$50 million. If the interest of investors is plunged then the amount may certainly double. The lack of a trusted central bank-backed digital currency has left the two- year blockchain bond to rely upon real-world money (in this case Australian dollar).

The joint statement released by Commonwealth Bank of Australia and World Bank said, “Blockchain has the potential to streamline processes among numerous debt capital market intermediaries and agents. This can help simplify raising capital and trading securities; improve operational efficiencies; and enhance regulatory oversight.” To make the platform bug free, safe, robust and free from attack vulnerabilities, the bank has collaborated with Microsoft. Presently, an Ethereum-based blockchain is being used but CBA said it is open to innovations and experiments to try other options with necessary capabilities.

Paul Snaith, manager of the World Bank’s Treasury Operations Capital Markets said, “The two-year life of the blockchain bond will provide quite a few learning events and opportunities. For now, though, investors still have to register and all cash will be transmitted separately from the blockchain through normal channels.”

The investor response is overwhelming as the project is all set to launch in August itself. The brave step of World Bank brings a golden future as it makes a trade and finance much faster and reliable.