The World Bank has finally launched ‘Bond-i’ – the world’s first bond with blockchain technology at its core. While the financial instrument has been launched in tandem with Commonwealth Bank of Australia, which has developed every aspect of it, Microsoft Azure will share its cloud platform to meet the data and computational requirements.
According to Commonwealth Bank of Australia, Bond-i is the first public blockchain-based debt instrument launched for public investors. Valued at USD 73.16 million, the bond has been measured to yield 2.25% in two years and would settle on 28 August.
Earlier this month, World Bank announced the upcoming blockchain bond and expressed consent on how blockchain technology could be the safe and reliable medium for transitioning from traditional bonds to digital bonds.
Talking about the reliability factor, ‘Bond-i’ is based on a private Ethereum blockchain with a consortium-style consensus model, which necessarily means that consensus, for any trade, will be determined by a fixed, pre-defined number of nodes.
In the past decade, Australia has been on the front when it comes to adopting emerging technologies, especially blockchain. The nation is among some of the major destinations that embrace blockchain technology, and have even tweaked their taxation laws to smoothen the flow for blockchain as well as cryptocurrencies. In fact, on 1 July 2017, sale and purchase of digital currency was exempted from the GST framework, and the tax liabilities were shifted to norms under Capital Gains Tax (CGT).