Bank of International Settlements Requires Blockchain-Based Sustainable Finance Solutions

A new initiative has been launched by the Bank of International Settlements, in collaboration with the Central Bank of the UAE and the Emirates Institute of Finance, to promote sustainable finance solutions. Check out the latest reports about this below.

The initiative is being led by the United Arab Emirates’ COP28 presidency. It aims to address data verification gaps in sustainable finance by utilizing blockchain, artificial intelligence, and the Internet of Things.

Developer teams are invited to participate in the COP28 UAE TechSprint challenge and come up with innovative solutions to the problem.

BIS General Manager Agustín Carstens announced the start of TechSprint by stating: “Combating climate change is more urgent than ever and it calls for a profound change in the way economies operate and grow.”

“To finance the needed transformation, investors need certainty that their funds are channeled to their intended uses. Technologies that promote the timely measurement and disclosure of climate-related information are part of the solution,” he further elaborated.

The initiative outlines three critical problem statements that it aims to address.

The proposed plan suggests the use of AI to improve the reporting, verification, and disclosure mechanisms of the financial services industry.

Additionally, it highlights the benefits of blockchain technology in enhancing transparency, traceability, and accountability in sustainable finance.

Finally, it recommends the integration of Internet of Things and sensor technology to enable accurate assessments of impact, risk, and compliance in sustainable finance.

COP28 President Designate Dr. Sultan Al Jaber affirmed this vision in a statement, and stated this:

“Tackling climate change requires available, accessible and affordable finance, and by introducing advanced technological solutions that support the development of sustainable finance standards and instruments, we can help to foster investor confidence and better ensure that capital reaches those who require it the most.”

Developers from all over the world are welcome to participate in this initiative, which has established an October 6 deadline for proposal submissions.

The TechSprint champions will be revealed on December 4th during a COP28 UAE event. From November 30th to December 12th, Expo City Dubai will host COP28.