LIVE NOW

Commonwealth Bank is putting biodiversity itself on the blockchain

Posted: 22 August 2019 1:35 pm
News

Picture not described

The tokens are already there. The goal now is to put them on a blockchain to better trade them.

Commonwealth Bank (CBA) in partnership with BioDiversity Solutions Australia (BDS) has created a scheme to tokenise biodiversity itself on the blockchain.

The nuggets of biodiversity, as it were, are based on the Australian Government Biodiversity Offsets Scheme. It's very similar to the controversial-at-the-time Australian carbon credits scheme, in that it creates incentives to reduce emissions – or protect biodiversity in this case – and creates a framework for trading credits to offset environmentally damaging activities.

The Biodiversity Offsets Scheme simply works by applying a biodiversity credit cost to developers and landholders who develop or clear land, while paying biodiversity credits to other landholders who maintain high levels of biodiversity on their land.

The latter can sell these credits to the former, to fulfil the former's biodiversity credit obligations and offset their activities. What's currently missing from this system is a transparent marketplace for the exchange of these biodiversity credits. That's where CBA's initiative comes in.

"Our vision is that by digitising biodiversity credits and building a marketplace where they can be bought and sold, we can invest in and protect our natural environments," said CBA head of experimentation and commercialisation for blockchain, Sophie Gilder. "The BioTokens can be programmed with complex scheme rules so that compliance and administration is automated, market activity is transparent and real time, and marketplace participants have a simpler, streamlined experience."

"Creating a transparent, accessible, secure and liquid market place for the creation and trading of biocredits, aligns with our strategic focus on sustainability, support for regional economies and exploration of emerging technologies to deliver tangible benefits to our customers. We see future possibilities to extend this concept to the management and allocation of other scarce resources, such as intellectual property or water rights," Gilder said.

"Our vision was to help facilitate the protection of precious environmental ecosystems, while also creating an alternative source of income for landowners and rewarding them for preserving biodiversity on their land," said BDS managing director Rod Barnaby.

"Developing a digital marketplace is part of a broader project we have been working on to help stakeholders participate in the NSW Biodiversity Offset Scheme."



Also watch


Disclosure: The author holds BNB, BTC at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site