Jim Yong Kim – the president of the World Bank Group expressed his thoughts about the distributed ledger technology (DLT) stating that he sees a “huge potential” in it and therefore the bank should pay more intensively focus on innovative technologies.
On October 11, Kim was speaking about the topic at the World Bank & International Monetary Fund (IMF) and the World Bank’s Annual Meeting at Bali, Indonesia.
Addressing the importance of increasing prosperity and focusing on the resistance of poverty, Kim pointed out that “there are innovations in the technological world that can help us leapfrog generations of bad practice, generations that would take forever in terms of reducing corruption.” He then added:
“We talked about cryptocurrencies, but we think distributed ledger has huge potential and we issued the first blockchain bound in August, where we created, allocated, transferred and managed the entire bond through blockchain technology.”
Kim stated that the aim of the World Bank is to create global access to financial services by the year of 2020, pointing out the need of a serious engagement with the world of technology in order to achieve the goal that is setted.
For the record, the President of the World Bank has not always seen the digital assets as brighter step into the future. Last year, on October, in the interview with CNBC Kim criticised blockchain technology arguing the risks of blockchain derivatives such as Bitcoin. He said:
“Blockchain technology is something that everyone is excited about, but we have to remember that Bitcoin is one of the very few instances [of blockchain’s use in currency]. And the other times when blockchain was used they were basically Ponzi schemes, so it’s very important that if we go forward with it, we’re sure that it’s not going to be used to exploit.”
Author: Sarah Tuuli