Following successful tests, a blockchain notarization service will be used for the first time at the next week’s Federal Bond Auction. Next Tuesday (2 October 2018), two outstanding German government bonds (0.75 percent Federal Bond 2018 – 2028 and 0.00 percent Federal Bond 2016 – 2023) will be topped up with a total volume of €1.15 billion, according to a translated release from Austria’s Ministry of Finance.
“The digitization of the financial sector, also known as fintech, has long arrived in Austria. We need to use the positive effects intelligently for the financial services sector. Blockchain technology is an economic policy focus for us. With the establishment of the Fintech Advisory Council in the Ministry of Finance, we are developing strategies to help Austria make the best possible use of these developments,” said Minister of Finance Hartwig Löger.
Blockchain solutions or similar solutions will be used as the basic technology in many areas of the digital economy and public administration. In order to gain practical experience, various blockchain technologies were evaluated for their practical suitability. As an additional service and for quality assurance purposes, a first blockchain real operation will be launched on 2 October 2018.
“Blockchain technology offers great potential for increasing efficiency and ensuring the quality of bank processes. Therefore, we have been dealing with this topic intensively for some time now and have already tested several prototypes. Starting the real operation on behalf of OeBFA (the Austrian Treasury) is a pleasing and logical next step”, said Angelika Sommer-Hemetsberger, Member of the Management Board of OeKB, an Austrian bank.
The goal is to log the authenticity of data with a so-called blockchain notarization service. “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 OeBFA.