CBA Exco announcement amid latest Blockchain development
(22 August 2019 - Australia) CBA has poached Telstra’s legal head Carmel Mulhern to steer the group’s review of technology focused governance checks and balances.
The new Group Executive Group General Counsel and Governance was appointed by CBA CEO Matt Comyn to further cement safeguards and capability to prevent another damaging AUSTRAC suspicious transaction reporting scandal that ultimately cost the bank over A$700 million. Mr Comyn stressed that the CBA was conscious of its obligations to customers as much as shareholders in announcing the appointment.
“Carmel is a respected leader with extensive legal expertise, a proven track record in risk management, a strong focus on doing what is right for customers, and personal and professional values that are aligned with the culture we are building at the Bank. I am delighted Carmel is joining the Executive Leadership Team” Mr Comyn said.
The announcement was made as CBA and BioDiversity Solutions Australia announced a new prototype platform to manage credits generated by the NSW government's Biodiversity Offsets Scheme. CBA and BDS have developed a proof of concept for a ‘digital marketplace’ using blockchain technology. The system creates transferable digital tokens called “biotokens” representing unique biodiversity assets.
The NSW scheme is complex for the government and property developers to manage because there are over 6000 types of credits relating to flora and fauna coupled with complex rules about how credits should be exchanged. The blockchain uses ‘smart contracts’ to embed these rules into the biotoken, automating the process of matching developers with credits and trading.
Blockchain technology also enhances security because transactions are irrevocable (the asset register cannot be altered) and offers to reduce the cost to government of managing the scheme by improving the auditing process. CBA has been conducting blockchain research and development since 2015 and launched a blockchain platform for the World Bank to issue bonds in 2018. The ASX is also developing the technology for its new Clearing House Electronic Subregister System (CHESS) replacement clearing and settlement system for the cash equities market.
"This platform allows users, through a web interface, to create, buy, sell, invest and retire these credits. "It allows the scheme to function in the way it was always intended: to balance supply and demand and to provide a price signal” said CBA Head of Blockchain and Artificial Intelligence Sophie Gilder.
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