Austria is a beautiful, forward-thinking, and wealthy nation landlocked along the Danube River in the heart of central Europe.
In fact, it has risen to prominence most recently for a choice the country made. That choice, the Austrian government will use the public blockchain of Ethereum to issue $1.35 billion (around €1.15 billion) in government bonds. The auction will begin on October 2.
Austria Trail Blazing for Blockchain Tech in Europe
The Austrians consider blockchain technology to be a cornerstone of current and future economic policies.
And in order to facilitate the development of blockchain-related advances, they have established the Ministry of Finance’s FinTech Advisory Council.
For example, Oesterreichische Kontrollbank (OeKB), among the largest Austrian banks, will run the auction as agent for the OeBFA Austrian Treasury. The bank is confident that the Blockchain notarization service has been sufficiently tested. It will be utilized for the very first time in the auction next week.
The ADAS Austrian Direct Auction System will send data in a manner that the IT Department from OeKB developed. They will notarize the data in the form of hash values.
Austria Stops Short of Using Cryptocurrency Tokens in the Bond Auction
Austria did draw the line at utilizing any token bonds though.
Some observers had hoped they might do a cryptocurrency token bond issue in parallel to paper and digital bonds. Still, Austria’s foray into blockchain bond issuing represents the first ever such endeavor of any Western advanced economy and government.
Austrian Treasury Managing Director Markus Stix feels this blockchain connection will make the auction more secure and prestigious. In addition, they are also confident it will lead to improved costs for their current and future financing efforts.
Ironically, it was the election of young populist leader Sebastian Kurtz that caused Austria to change its blockchain policy.
In fact, they went from apathetic (or hostile) to extremely friendly. Austrians hope this will help them to become an innovation leader in the digital universe. Time will tell how successful they are in catching up to Malta, Estonia, Switzerland, and the U.K. If they decide to go with digital assets’ tokens for the bonds, that would certainly advance their crypto-verse standing.
Want the latest crypto news? Join our Telegram Channel