Big Milestone For Blockchain -The Austrian Government announced that it has prepared to auction $1.3 billion worth of bonds on Ethereum, which will be the largest initial milestone for the blockchain. Austrian treasury stated that these are Government Bonds and will be the largest-ever smart contract by a governmental organization till date.
“This added security contributes to a high level of confidence in the auction process of Austrian government bonds and strengthens Austria’s good standing in the market, which can also indirectly contribute to favorable financing costs,” said Markus Stix, head of the OeBFA.
On Tuesday, Oct 2nd the local banking giant Oesterreichische Kontrollbank (OeKB) is going to auction these governmental bonds. As on behalf of the Austrian Government, according to the Ministry of Finance’s press release reports.
OeKB Executive board-member Angelika Sommer-Hemetsberger stated that the notarization data will be deployed in the form of hash values. Hence, the auction will follow a series of successful trials. And in all these processes OeKB will act as the “neutral capital-market participant” for the treasury.
Several prototypes have already been tested and the Government has been intensively working on this project for some time now. There is great potential for increasing efficiency and assuring quality in banking processes is offered by “Blockchain Technology”. The Austrian treasury launching live operations at this point represents a gratifying and logical next step.
BLOCKCHAIN- “UNLIKELY HERO”
Big Milestone For Blockchain-Initially, Blockchain was received with technological resistance against banks and government-led finance, but it seems that it has become an unlikely hero for some.
In a press conference, Austrian Government has shown waxed lyrics about the merits and technological use of Blockchain: “Blockchain is the system which cannot be manipulated in terms of securing and transferring the information”. The Austrian government further stated that this smart contract gives added securities, high level of confidence in the auction process. And a strengthened position for the Austrian Government in the market.
The Austrian government did not want to stand apart from the rest by using Blockchain technology in its financial system. Because the Commonwealth Bank of Australia has already been participating in similar activities. Which are exclusively preferred by the World Bank in conducting blockchain-based bond transactions.