Austria to Issue of Government Bonds on Blockchain

On October 2, Austria will issue state bonds based on blockchain technology. In this way Austria assumes a pioneering role in the European scenario with the use of blockchain technology. The Austrian Minister of Finance, Hartwig Löger, stated:

Digitalisation of the financial sector, also referred to as FinTech, was established in Austria some time ago. We need to use its positive impact intelligently for the financial service sector. For us, blockchain technology forms a focus of economic policy. Through setting up the FinTech Advisory Council at the Ministry of Finance, we are developing strategies enabling Austria to benefit optimally from these developments”

As a neutral participant of the capital market, and on behalf of the Austrian Treasury (OeBB), Oesterreichische Kontrollbank (OeKB) operates the auction procedure for the issuance of State bonds by the Republic of Austria. Austria Markus Stix, General Director of the Treasury said:

This added security contributes to achieving a high level of confidence in the auction process for Austrian government bonds and strengthens Austria’s good standing in the market, which indirectly also has the capacity to contribute to favourable financing costs.

This coming Tuesday, October 2, 2018, a touch of two state bonds (0.75% government bonds 2018-2028 and 0.00% government bonds 2016-2023) will be issued in a total volume of 1 , 15 billion euros through the public blockchain Ethereum.

Since a change of administration in Austria, where a conservative party brought to power the youngest leader in Europe, We see that the country is open to using technology for Austria has become favorable to the use of technology to move towards the transparency and is now effectively adopting the blockchain technology. The Ministry of Finance says in a statement:

Blockchain and similar solutions will be used in many areas of the digital economy and public administration as an underlying technology. In order to gather practical experience, various blockchain technologies have been evaluated in terms of their suitability in practice. By way of additional service, and for quality assurance purposes, on 2 October 2018, an initial live blockchain operation will be launched. “Blockchain technology offers great potential for increasing efficiency and assuring quality in bank processes. For this reason, we have indeed been engaging intensively for some time with this topic and have already tested several prototypes. Launching live operations at this point, on behalf of the Austrian Treasury, represents a gratifying and logical next step,” declared Angelika Sommer-Hemetsberger, Executive Board member at OeKB.

Harald Mahrer, the Minister of Economy of Austria, reveals the expectations of taking the lead in the race for regulation via Blockchain:

To become an innovation leader, we must walk down new paths without taboos and cope with technologies that will radically change many areas of our life tomorrow”.

They further held a blockchain summit in December ahead of Austria taking the rotating EU Presidency in the second half of 2018 during which they said “digitization and new technologies will be a central topic.”

This, in conjunction with what was stated by Malta with respect to the use of an interbank bank, shows a clear tendency towards the adoption of the blockchain to improve services and increase the reliability of the States.

 

Daniela Caro

Writer by birth, curious by profession … I learn a little more every day from the cryptocurrency.

Daniela Caro

Daniela Caro

Writer by birth, curious by profession ... I learn a little more every day from the cryptocurrency.