The government of Austria intends to use the Ethereum blockchain to issue state bonds worth 1.15 billion euros (1.35 billion dollars).
Osterreichische Kontrollbank (OeKB) is one of the largest banks in Austria with assets of EUR 26 billion at Ozanam in 2017 – will issue bonds on behalf of the Austrian Treasury (OeBFA) during the auction, scheduled for October 2.
A similar procedure in respect of government bonds applied in Austria for the first time. According to the Minister of Finance of Austria Hartwig Legera, the Department believes that blockchain technology brings significant changes in economic policy.
“Thanks to the creation of the Advisory Board of Finance at the Ministry of Finance we develop strategies that enable Austria to derive maximum benefit from emerging technologies,” he said.
According to the OeKB, the procedure was successfully tested – it is based on a system developed by the Bank for “notarization data of Austrian direct auction (ADAS)”.
Marcus Stix, managing Director of the Austrian Treasury Kleine Zeitung, notes that the use of the blockchain in this system has key benefits for both security and to reduce costs.
“This extra security helps to achieve the highest level of confidence in the auction for Austrian government bonds and strengthens the positive reputation of the Austrian market, which also will contribute to a favorable financial costs,” he said.