World Bank’s entry into blockchain not welcome by Jeffrey Tucker

After the World Bank announced its entry into blockchain technology, Jeffrey Tucker, Editorial Director for the American Institute for Economic Research [AIER], has condemned the bank’s move to shift from traditional fiat currency to cryptocurrencies.

Earlier this month, the Commonwealth Bank of Australia [CBA], one of Australia’s ‘big four’, won a mandate from the World Bank to become the World’s first facilitator of a unique kind of debt instrument [bond]. The bond in question will be built and handled on a blockchain.

Following its launch, bond-i [Blockchain Offered New Debt Instrument] will be operated on a private Ethereum chain by the World Bank in Washington and CBA in Sydney, the Australian bank mentioned in an announcement last Friday. CBA also added that the bank is open to other blockchains in the future.

Notably, the World Bank will use Microsoft Azure [cloud computing platform] to run the bond in Washington. Microsoft has already validated Ethereum’s “capabilities, security, and scale”, the bank added.

James Wall [CBA’s general manager for international markets] had also indicated that the partnership with decentralized technology will efficiently increase funding for countries with extreme poverty. In his statement he added:

“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”

Denis Robitaille [World Bank Group, CIO], believes disruptive technology will act as a stepping stone in aiding economically backward countries. He said:

“Helping countries transition to technology-led development is key to our goals of reducing poverty and promoting lasting development…”

After the World Bank and CBA tied hands, Tucker disapproved the move. In his statement, he urges central banks worldwide to let go of the thought of creating cryptocurrencies that are backed by the law. He further says that financial institutions should focus on the stability that the fiat and the banking systems offer.

Cryptocurrencies and its associated infrastructure are innovations which must remain solely private, he said. He further added that the state should not involve itself in the particular subject.

In his view, world wars and economic depression, inflation rates, and government debt, have come into effect ever since the rise of state-controlled monopoly. He further explains how cryptocurrency helps people gain control over their money.

According to Tucker, cryptocurrency is the “most exciting thing in money and finance on the planet,”. He concludes by saying that the statecraft has no business getting their hand into it.