Financial institutions all over the world pay close attention to Bitcoin and blockchain. In Australia, things appear to be heating up pretty quickly. Commonwealth Bank of Australia wants to issue a bond on a blockchain in 2018. This is an interesting development, despite the lack of proper specifications regarding this bond. Using a blockchain to achieve this goal is a smart decision.
It is always interesting to discover new use cases for blockchain technology. Finance-related purposes are the most logical outcome in this regard. Commonwealth Bank of Australia further confirms this is the right way to go. More specifically, they plan to issue a blockchain-based bond is getting a lot of attention. While specifics are hard to come by, it seems this is part of an in-house developed platform. Users can transfer and pay the bond over a blockchain system. An interesting approach, to say the least.
A big Move by Commonwealth Bank of Australia
It is true Commonwealth Bank of Australia has been a fan of blockchain for some time now. They are actively exploring new and different blockchain-based use cases. Over two dozen proofs-of-concept have been completed during this period as well. Real-world business issues are not hard to come by, especially not in the financial sector. Bonds over the blockchain are just one of many potential use cases in the future, though.
For now, we have to wait and see what this product entails exactly. Commonwealth Bank of Australia has acknowledged this system exists for some time now. Its development started many months ago. At the time, the goal was to focus on government bonds. it is unclear if this is still the case right now, but that seems likely. This new platform has also been tested by the Queensland Treasury Corporation, which is the nation’s central financing authority.
How all of this will play out, remains to be determined. Banks all over the world will keep exploring blockchain use cases. Issuing bonds have been just one option worth exploring in the financial sector. Commonwealth Bank of Australia is not the only institution exploring this option. A live bond using blockchain was issued in Russia earlier this year. We will see even more competing projects in the future, that much is evident
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