World Bank Group President positive about blockchain technology.
In a panel discussion hosted by CNBC, Jim Yong Kim, World Bank Group President said that blockchain technology can aid to realize the actualization of global financial inclusion. He feels that the more emphasis they put on the technology the more it will help achieve the goals of the organization.
At the panel, he regarded the distributed ledger technology or blockchain technology as one of the critical emerging technologies.
“We think distributed ledger [technology] has real potential and we issued the first blockchain bond in August where we created, allocated, transferred, and managed the entire bond through blockchain technology,” said Kim.
He also mentioned that since the bond is blockchain based it reduced paperwork which in turn reduced the cost of the process. This made the President pin his hopes on the technology and its significance in the future.
According to a report by BC Focus in the month of August, the World Bank priced the first public bond, designed and managed on the technology, at 100 million AUD (73.16 million USD). The global financial institution is looking forward to examining how the distributed ledger technology can improvise the bond sales practices.
Kim also admitted that the organization isn’t keeping pace with the evolution of blockchain technology. He also mentioned that in order to have greater success in fulfilling its mandates, the World Bank needs to keep constant pace with the technological developments taking place in the distributed ledger or blockchain.
However, a report recently published by IMF states that cryptocurrencies threaten the structural integrity of the global finance market.
“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. The continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” says the report.
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