The newest project aims to reduce costs and fasten bond issuance.
The Government of Israel is reportedly planning to test blockchain-based digital bonds by issuing its trading platform.
The testing will be conducted by The Israeli Ministry of Finance and the Tel Aviv Stock Exchange (TASE). To help these institutions, digital asset custody, transfer, and settlement platform Fireblocks and the United States software developer VMware will assist with the project.
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According to the local news portal The Marker, the new project aims to reduce costs and shorten the period needed to issue or clear state bonds.
When talking about the project, the accountant general, Yali Rothenberg, noted:
I believe that blockchain-based technologies are here to stay, and over time will permeate the core of the financial markets, thoroughly and deeply altering them. It is our duty to constantly examine new technologies and methodologies.
Moreover, Fireblocks CEO and Co-founder Michael Shaulov added:
Digitizing the financial system takes the collaborative efforts of both the public and private sectors. Fireblocks is honored to work with the Israel Ministry of Finance, the Tel Aviv Stock Exchange, and VMware to develop the first digital state bond in Israel.
During the pilot, participating banks and institutions will receive newly issued tokenized government bonds in their e-wallets on an exclusive project platform. The institutions will pay for bonds using digital currency, which will be transferred to the government’s e-wallet.
TASTE CEO Ittai Ben-Zeev highlighted that if successfully applied, the technology will make capital markets “more accessible to the public.”
The financial markets are undergoing drastic transformations in recent years, with the introduction of revolutionary technologies that affect the manner in which customers worldwide operate and invest. As a global technology leader, we hope to see Israel spearhead financial technology as well, being the first to implement cutting-edge technologies and upgrade the capital market, making it more accessible to the public.
The government has not disclosed which cryptocurrencies will be used for the transactions. However, Israel noted that the pilot should be completed by the end of Q1 2023.
by Gile K. – Crypto Analyst, BitDegree
SOURCE: COIN JOURNAL
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