Austria will issue 1.15 billion euros of government bonds on Ethereum

    2018/09/28 14:49 Joey huang Created with Sketch.
Introduction The Austrian government will issue 1.15 billion euros ($1.35 billion) in government bonds on Ethereum on October 2.

The Austrian government will issue 1.15 billion euros ($1.35 billion) in government bonds on Ethereum on October 2. 


Austrian Finance Minister Hartwig Löger stated:

“Blockchain technology is an economic policy focus for us, and with the establishment of the FinTech Advisory Council in the Ministry of Finance, we are developing strategies to help Austria make the best possible use of these development.”

Oesterreichische Kontrollbank (OeKB), one of Austria's largest banks, will operate the auction process for the issuance of government bonds on behalf of the Austrian Ministry of Finance (OeBFA). OeKB stated:

 "After successful testing, blockchain notary services will be used for the first time at next week's federal bond auction."

The system developed by OeKB's IT department will notarize the Ethereum hash value generated by the ADAS (Austrian Direct Auction System) system.

They did not issue a further bond pass to supplement the established banknote or digital system, but this is the first time Western governments have used blockchain technology to issue bonds.

“This increased security contributes to a high level of confidence in the auction process of Austrian government bonds and strengthens Austria’s good standing in the market, which can also indirectly contribute to favorable financing costs”, 

Markus Stix ,the Austrian Ministry of Finance said.

Austria demonstrated their ambition to become the world's blockchain technology industry leaders. In October last year, Austrian Economy Minister Harald Mahrer said, “To be a leader in innovation, we must embark on a new path without fear, and be prepared to completely change the technology in all aspects of our lives.”

During the second half of 2018, when Austria assumed the rotating EU presidency, they held a blockchain summit. During the meeting, they said that “digitalization and new technologies will become a central issue”.

This is the latest sign that blockchain technology is beginning to enter practical use. Austria has taken a small step toward the digital age to combine their bonds with the digital certificate nature, which may greatly improve transaction efficiency and even release huge transactions amount.

    Adapted from: CoinTime Executive editor: Nino
Declaration:The purpose of COINTIME in carrying out more information does not mean endorsing its view or confirming its description. The article is for reference only, does not constitute investment proposal. Investors operate on the basis of risk.
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