In a September 25 announcement, the Austrian government informed the world about its decision to use the Ethereum blockchain to issue $ 1.15 billion ($ 1.35 billion) in government bonds next week on October 2nd. Oesterreichische KontrollBank (OeKB) will issue the bonds on behalf of the Austrian Treasury (OeBFA). In the process, the bonds will be notarized on the Ethereum blockchain.
Austrian Finance Minister, Hartwig Löger (ÖVP), said this on the development of the use of blockchain technology:
Blockchain technology is a matter of economic policy for us, and with the establishment of the FinTech Advisory Council at the Ministry of Finance, we are developing strategies to help Austria make the best use of these developments.
Blockchain technology. increase security
The board member of OeKB, Angelika Sommer-Hemetsberger, had to add the use of blockchain technology to verify the data:
Blockchain technology offers great potential for increasing efficiency and ensuring the quality of banking processes.
The CEO of OeBFA, Markus Stix, also added the following:
This increased security contributes to a high level of confidence in the auctioning process of Austrian government bonds and strengthens Austria's good position in the market, which can also indirectly contribute to favorable financing costs
Ethereum Planning to Scale
As can be seen in the development of the news above the Austrian government using the Ethereum blockchain to authenticate the issue of bonds, the platform is still the preferred option due to the fact that it has been tested over time. It is therefore understandable that the call to scale the amount of transactions that the network can manage has continued to increase over time. Vitalik Buterin's most recent solution was to use ZCash ZC-SNARK to increase throughput to 500 transactions per second.
What is your opinion on the government bonds that are notarized on the blockchain? Does this mean that the adoption of blockchain is underway? Let us know in the comments section below.
[Image courtesy of Coingape.com]
Disclaimer: this article is not intended to give financial advice. Any opinion here is purely that of the author and does not represent the opinion of Ethereum World News or its other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.