Austria became the first European country to issue a government bond using blockchain technology. The Austrian government auctioned €1.15 billion in Bonds using Ethereum to manage the security issuance.

Notarization of government bonds via blockchain

The new technology is used for data notarization for reports from government bond auction onwards. This notarization service provides a trail to verify the authenticity of data, thereby ensuring the greatest possible degree of data security. Notarization is a new additional support element for the auction process. Blockchain technology is used in this particular case as an additional layer of security.

In general blockchain technology has great potential for increasing the efficiency and quality management of banking processes. Numerous applications are emerging, especially in the fields of the digital economy and public administration. Angelika Sommer-Hemetsberger, the OeKB Board Member responsible for IT and Capital Market Service comments:

“We regard the innovative form of blockchain-based data notarization as a logical technological advance in times of digitalization. We are delighted to be able to offer our customers this new blockchain service”

More information regarding the model used can be read here.

This blog post is brought to you by the Altfinator project in which PEDAL is a partner.