The Austrian government will use the ethereum blockchain to authenticate the auction of a government bond worth 1.15 billion euros, or about 1.3 billion dollars.
The Federal Finance Agency (OeBFA) has awarded the banking giant Oesterreichische Kontrollbank (OeKB) to carry out the auction on its behalf on 2 October, according to an announcement by the Ministry of Finance on Tuesday.
The responsibilities of the bank will include the implementation of the authentication service to authenticate the data of the auction transactions and subsequently to file them on the blockchain, the agency explained.
A newsletter published by Kleine Zeitung on Tuesday indicated that OeKB has confirmed that it will use internal IT resources to oversee the distribution, which will use the blockchain ethereum to store data as hash values on the public network.
Angelika Sommer-Hemetsberger, a member of the board of directors of OeKB, commented in the announcement:
"Blockchain technology offers great potential to increase efficiency and ensure the quality of banking processes, so we have addressed this subject intensively for a while and have already tested several prototypes. real operation on behalf of OeBFA is a logical next step. "
This is the first move by the Austrian government to adopt the blockchain for national financial transactions, said OeBFA, adding that it considers emerging technology as a "focus of economic policy".
"This increased security contributes to a high level of confidence in the Austrian Treasury auction process and strengthens Austria's good position in the market, which can also indirectly contribute to favorable financing costs," said Markus Stix, responsible for the OeBFA.
The effort marks yet another case in which the blockchain is adopted in a bond issue process.
Just last month, the World Bank Group announced that it had raised $ 81 million during the issuance of historic bonds using a private blockchain network created by the Commonwealth bank in Australia.
And last July, the production company behind the Mercedes-Benz automaker – Daimler AG – issued a € 100 million bond-bond bond on a private version of the blockchain ethereum.
Vienna, Austria, image through Shutterstock