WASHINGTON–The World Bank is looking to raise money, and it’s turning to blockchain to do it.
The World Bank is planning to issue what is believed to be the world's first global blockchain bond, which, as one analysis stated, would make for a “notable mainstream endorsement of the emerging technology.”
Blockchain is the technology underpinning Bitcoin and other cryptocurrencies that proponents have claimed could one day eliminate the currencies issued by governments.
The World Bank has hired Commonwealth Bank of Australia to manage the bond, which is expected to raise as much as 100 million Australian dollars ($73 million).
The new offering is being called the "Blockchain Offered New Debt Instrument," or "bond-i," a nod to Sydney's famous Bondi Beach, according to CNN.
The World Bank is following German automaker Daimler, which earlier turned to blockchain to issue a type of German bond in a pilot project last year.
Blockchain could hugely streamline the process of issuing bonds, which has been heavily reliant on physical paperwork for the past 200 years, James Wall, a senior institutional banking executive at Commonwealth Bank, told CNN. Moving the process to the blockchain could cut costs and speed up trading for both bond issuers and investors, he added.
"The potential of this is that it could be a revolution for the capital markets," Wall told CNN.