Blockchain Has Huge Potential, Says World Bank President

News | October 15, 2018 By:

Jim Yong Kim, president of the World Bank, said that blockchain technology has huge potential, and that embracing the technology is essential for the bank’s goals.

During the International Monetary Fund (IMF) and the World Banks’ Annual Meeting in Bali, Indonesia, Kim talked about the role of innovative technologies in the world of finance. He noted that the distributed ledger technology (DLT) can “help us leapfrog generations of bad practice, generations that would take forever in terms of reducing corruption.”

In August of this year, the World Bank and the Commonwealth Bank of Australia (CBA) issued the first blockchain bond worth over $80 million, which was successfully transacted on the ethereum network. The two-year bond was designed to test how DLT might improve decades-old bond sales practices.

Kim said that blockchain helped the organization reduce paperwork and costs, adding that the technology is “something that can be extremely helpful” in the future. However, he admitted that the World Bank has not been keeping up with the latest developments and they’re not doing it in a way that would help their clients take advantage of the great things that are coming out.

“We at the World Bank, we interact with so many countries that don’t have a Silicon Valley,” he said. “It is absolutely our responsibility to keep up with the changes.”

Universal access to financial services by 2020 is one of the World Bank’s goals, but Kim said it will not happen without “deeper engagement in the technology world.”