Next week, the Austrian government will hold an auction for the sale of state bonds in the amount of 1.35 billion dollars posted on the Ethereum blockchain.
Holding blockchain-auction long-term Treasury bonds will do Osterreichische Kontrollbank (OeKB), the largest Austrian Bank, the total assets of which in 2017 the year amounted to 26 billion dollars.
The Minister of Finance of Austria, Hartwig Leger, noted that the state financial authority shall consider the blockchain technology as one of the “directions of development of economic policy of the country”:
“Thanks to the creation of FINTECH Advisory Council of the Ministry of Finance we develop strategies that enable Austria to optimally use the possibilities of the blockchain”
Representatives of the OeKB emphasize that this is the first case when under the public auction for the sale of the bonds will be used blockchain as a way of notarization. Austrian Direct Auction System (ADAS) developed and successfully tested OeKB and is part of the public blockchain of Ethereum.
Managing the Austrian Treasury, Marcus Stix, notes that the principle of using blockchain technology in this case is similar to the principle of issue licenzirovanie stock, operating in parallel with existing Fiat currencies. He believes that blockchain technology has key benefits in terms of safety and economic costs:
“Additional security contributes to a high level of trust in public auction and strengthens the good reputation of Austria in the international market”
Last month the Australian Commonwealth Bank (CBA) has also announced the release of the blockchain public bonds together with the world Bank. The transaction in the amount 73,16 million dollars includes the production of two-year bonds with a yield of 2,251%.