Austria will issue €1.15 billion in government bonds using Ethereum

[Paha87]

The Austrian government intends to use the Ethereum blockchain to issue government bonds worth 1.15 billion euros.

                 




Oesterreichische Kontrollbank (OeKB) — one of the largest banks in Austria with assets of $ 26 billion— will issue bonds on behalf of the Austrian Treasury (OeBFA) during the auction scheduled for October 2.


The Minister of Finance of Austria Hartwig Leger said:

Through the establishment of the FinTech Advisory Council under the Ministry of Finance, we are developing strategies to enable Austria to benefit optimally from these developments.

OeKB reports that this will be the first time the blockchain-based notarization service will be used as part of a Federal bond auction in Austria.

As noted by Kleine Zeitung, the use of blockchain in this case does not apply tokenized connections, which will operate in parallel with existing paper or digital systems. However, as Markus Styx, managing Director of the Austrian Treasury Kleine Zeitung, said,"the use of this technology has key benefits for both security and cost reduction."

Austria is not the first country interested in the issue of securities on the blockchain. In the spring of this year, Sberbank CIB-the corporate and investment banking division of Sberbank — conducted the first transaction on commercial bonds on the basis of the blockchain platform in Russia.


Link to the source of information (Russian) - https://altstake.io/news/avstriya-vypustit-gosobligaciy-na-115-mlrd-ispolyzuya-ethereum