During the auction, which will begin on 2 October, the Austrian government will issue government bonds in the amount of $1.35 million in the blockchain of Ethereum cryptocurrency. Operation is performed by the largest Austrian Bank Osterreichische Kontrollbank.
The bond issue will be certified by the departments of the Bank on information technologies, this information is then transferred to a system called Austrian Direct Auction System (Austrian system of auctions).
Managing Director of the Austrian Treasury Marcus Styx commented on the government decision:
“Blockchain technology will improve the level of security of the auction and to strengthen the position of Austria on the market of innovative technologies. Moreover, the application of the blockchain will reduce operating costs.”
The Minister of Finance of Austria Hartwig Leger announced the government’s intention to use the blockchain in different spheres of economy and administration. Leger believes that technology must be tested in practice, so the auction of government bonds will serve as a testing ground.
Last year the Minister of Economics Harald Mahrer spoke about the ambitious plans of the authorities. According to him, Austria should become a market leader in the blockchain industry, therefore, the digital economy and new technologies become a priority area. Thanks to blockchain, the bonds will effectively become tokens that will significantly improve their accessibility and increase trading volume.