The Ministry of Finance of Israel has recently made an announcement regarding digital bond trading.
The Ministry has announced that it has launched a live test for the digital bonds trading service, based on a blockchain-based platform.
Finance Ministry’s Collaboration with Multiple Entities
The Ministry officials have confirmed that they have collaborated with multiple entities to come up with digital bonds.
These entities involve the Tel Aviv Stock Exchange (TASE), VMware, and Fireblock. VMware is a software solutions provider in the US while Fireblock is a digital asset custody provider.
As communicated by the Finance Ministry, these firms will be involved throughout the testing phase of the digital bonds and their trading activities.
The officials have confirmed that the Ministry of Finance would be responsible for the issuance of digital bonds.
Eden’s Announcement was made on October 19
The news surrounding the particular platform broke out on October 19 by the local media. The sources claimed that the name given to the particular platform by the Ministry is ‘Eden’.
With the new project in place, the government is aiming to optimize the process for the issuance of national bonds and reduce their costs.
Yali Rothenberg’s Statement
Yali Rothenberg, the account general was the first to make a statement on behalf of the government on the issuance of digital bonds.
Rothenberg stated that the government has somewhat realized that blockchain technology is not going away. The technology is here to stay and it would continue evolving into something bigger.
Over time, blockchain-based technologies may achieve greater milestones and may even overtake the financial markets.
The technology has the potential to root itself into the traditional financial system. It is their duty to stay vigilant and continue offering new methodologies and technologies to their citizens.
Live Test Process
According to the Ministry, the banks will be participating in the live test as well. The banks would be provided with e-wallets for the particular platform.
The tokenized government bonds would be sent over to the e-wallets of the banks participating in the live test. The banks would then transfer the money from the tokenized bonds over to the government.
As for the government part, they would also have the e-wallet set up on the particular platform. The Israeli government would be receiving the money in their e-wallet on the same platform.
No Information on the Currency
Currently, the sources have no specifics on whether any cryptocurrencies would be involved in the process or not.
Given the treatment being given by the Israeli government to blockchain technology, it is a high possibility that cryptocurrencies may be introduced into the platform.