WASHINGTON—The World Bank believes Blockchain may be especially useful in moderating the ongoing de-risking by financial institutions.
“Blockchain could be instrumental in countering bank de-risking in developing nations, bringing credit and finance back to emerging market populations. Blockchain-based services are proliferating among developing nations in Asia, Africa and Latin America, with real potential benefits,” the World Bank said, according to a Business A.M. report.
The statement comes on the heels of World Bank’s latest research on blockchain carried out by the International Finance Corporation.
World Bank stated that the blockchain’s potential uses would go beyond financial sectors, with possible benefits for global value chains that cross multiple borders and connect advanced and emerging economies, Business A.M. reported.
The research indicated that “Blockchain has potential productivity gains for industries including finance, energy, intellectual property, public sector and more, that it can help people in developing markets enter and access the financial system, with secure ID and data services, Business A.M. reported.
“The World Bank believes blockchain is a new mechanism of trust that could bring significant productivity gains to multiple industries, from financial services to energy, intellectual property, the public sector, and beyond as digital finance, mobile networks, the cloud, big data,” Business A.M. said.