As the term “Blockchain” is gaining more and more popularity, the technology itself also becomes the firm favourite all across the world. Austria has recently expressed its desire to implement the technology. They will use blockchain Ethereum, but for what?

This European country is seeking fundraising. They will auction $ 1.3 billion worth of government bonds and will use Ethereum's blockchain to authenticate contracts. Still, will they mobilize such large sums? We will know on October 2, 2018.

Austria will use Blockchain of Ethereum

Austria's financial services organization for export and markets, The Oesterreichische Kontrollbank (OeKB), will auction new government bonds on Tuesday.

The new Ethereum-based blockchain aims to manage public debt up to $ 1.3 billion. OeKB is working with the Federal Government Finance Agency of Austria (OeBFA) to implement this technology.

Economic policy focus

According to the Finance Minister of Austria Hartwig Loger, blockchain technology is a "focus of Austria's economic policy." The country has established the FinTech Advisory Council to encourage as well as manage growth in the sector associated with the distributed ledger.

Government bond is another form of investment. When buying bonds, investors are lending money to the government and will be refunded after a predetermined period of time. There will be additional interest rates for repayments to encourage bondholders.

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Refunds will not be made until 2023 and even 2028 with some cases.

In other words, Austria’s Government bond is a long-term trial of applying the Ethereum blockchain in this manner.

How will Ethereum work ?

Austria will use the Ethereum Blockchain, but the question is how? According to Hard Fork, the technology will work as follows:

“Ethereum will pull data about the bonds from the Auction Procedure for Federal Bonds of the Republic of Austria (ADAS). It will then notarize the bonds as a HASH value in Ethereum’s blockchain. The Republic of Austria guarantees the bonds and the Luxembourg Stock Exchange lists them […] Ethereum will write data related to the conditions of the bond to its blockchain for its immutability and trustlessness.”

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Europe has always been giving close attention to the blockchain technology. Malta's “Blockchain Island”, Berlin the "Hotspot", described by Joseph Lubin of Ethereum, Switzerland and its voting system based on Blockchain, or Zug, a booming Blockchain business centre… As the list of country implementing blockchain continues to grow, it is clear that the technology will soon act as the core tech of development all across the globe.