IDB announces blockchain-based green bond transparency platform
The innovative tool of distributed data encryption is the first of its kind that facilitates the reporting and verification of emissions
Through an innovative digital blockchain technology tool, the Inter-American Development Bank (IDB) has announced the creation of the Green Bond Transparency Platform that allows greater transparency in the Latin American and Caribbean bond market.
The distributed data encryption platform is the first of its kind to facilitate the reporting and verification of emissions with blockchain technology. That is, issuers, investors and other market players can upload and check detailed transaction information, bond performance, profit utilization and environmental impact of green bond issues in the region.
“The platform solves one of the main challenges of the green bond market, which is to provide investors with the additional information they demand about the use of the proceeds of the bonds they acquire. If we solve this problem, we will see a significant increase in the growth of the green bond market,” said Juan Antonio Ketterer, Head of the IDB’s Connectivity, Markets and Finance Division.
The launch is scheduled for 2020 and their expectations in the market are linked to offering a greater level of confidence to the main actors, clearing the obstacles that make it impossible to provide the entry of new participants that require a higher level of transparency and comparability.
“Green bonds have become a vital tool for attracting private capital to the region, and a greater degree of transparency will help to further expand that market,” Ketterer added.
K.Villarroel
Source: iadb
