Government Bonds: How Blockchain Can Beat the Red Tape

Last week, Austria became the latest government to successfully trial blockchain platforms to issue government bonds.

Government bonds are debt securities which represent an important way to support government spending and are widely considered to be one of the most risk-free investments available.

Government bonds also make up a large proportion of the secondary market, with a total value of $22.116 trillion across the world as of September 2018.

Austria becomes the latest country to issue blockchain bonds.

Austria's government is the latest to issue bonds via the Ethereum public use blockchain, with 1.15 billion euros due to be sold at auction in early October.

"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 favorable financing costs."

Australia adds blockchain bonds to its growing list of technological achievementsAustralia is one of the foremost countries worldwide to have made serious inroads with the implementation of blockchain in multiple sectors.

In August, the Commonwealth Bank of Australia, along with the World Bank, also issued 100 million Australian dollar public bonds via blockchain.

The project, named the Blockchain Operated New Debt Instrument, aims to be the first definitive step toward bringing the creaking bond issuance practice into the 21st century.

Thailand launches registrar service platform to cut red tape and boost the secondary marketThailand has also taken the first steps toward issuing blockchain bonds.