‘BOND I’ (Block chain Operated New Debt Instrument)

Question 1

What is it

Answer 1

It is an initative of world bank that tends to use block chain to issue bonds and check on its benifits.

Question 2

Who will issue the bonds

Answer 2

Commonwealth Bank of Australia (CBA) is the sole arranger thus it is also called as Kangroo bonds.

Question 3

What are the uses

Answer 3

• The launch of the blockchain bond is an initial step in moving bond sales away from manual processes towards automation.
• Blockchain technology could help in cutting down ond settlement time “from T+2 days currently to T+2minutes”.
• The technology has potential to deliver substantial cost savings as intermediary activities can be eventually reduced or removed.
• It also improves the reputation of crypto-technologies which are currently viewed suspiciously.