Organizations can adopt Blockchain technology to realize their growth potential and business goals. This is according to Jim Yong Kim who is the President of the World Bank. He believes that Blockchain technology has a “huge potential” that is yet to be tapped by the world. Kim added that DLT could help the organizations to utilize resources that could take “forever”.
World Bank President, Jim Yong Kim, was speaking In Bali Indonesia during an annual meeting. The conference was organized by the World Bank and the International Monetary Fund (IMF).
The World Bank Is Fighting Poverty
The World Bank has a mandate to end poverty in all parts of the world and to boost prosperity also. In connecting the mission of the World institution to what President Jim Yong Kim said, it can be deduced that Blockchain technology can be applied by organizations all over the world to bolster efficiency. This would, in turn, lead to a spike in profits that mean economic growth and consequential alleviation of poverty in that order.
According to the leader of World Bank, DLT could play a role in “reducing corruption” and to “leapfrog generations of bad practice” that hinder positive progress in organizations. When companies prosper, they can employ more people, pay more taxes, invest in innovation and invention, and also contribute to social welfare initiative. Applying DLT, therefore, can have a far-reaching impact on not only individual companies but the entire human race as Blockchain technology can transform the world to a better place.
The World Bank Has Been Using Blockchain Technology
To demonstrate that he was speaking from an experience standpoint, President Jim Young Kim game an example of how the World Bank has benefited from Blockchain technology. The organization managed, transferred, allocated, and created Blockchain-based bonds through the Distributed Ledger technology.
According to the institution, the implication of adopting DLT was a great reduction of paperwork, a plunge in operational costs, efficiency, and faster transaction time. Additionally, the process came with the advantages of transparency that the personal and managers have been able to leverage on to achieve the best results.
Adding to the World Bank Head, using Blockchain technology has not only helped to reduce the amount of paperwork the institution had to deal with after launching the world’s first Blockchain bonds but also helped it in cutting related costs. There is still room for improvement for the organization to help clients take advantage of its services.
Blockchain Technology May Lead To Universal Access To Financial Services By 2020
Additionally, the World Bank has a goal of ensuring that there is universal access to financial services by 2020 according to its President. It is evident that “the huge potential” of DLT will be applied to this course since it has also been proven to revolutionize fintech services.
Moreover, Cryptocurrencies may also play a role in ensuring that a lot of people have access to financial assets as well as money. However, the Financial Stability Board (FSB) and the IMF through its paper “World Economic Outlook: Report On Challenges of Steady Growth” fears that the rise of Digital Assets poses vulnerabilities to the global financial system. But this can be corrected by regulation which is underway in most countries.