Israel is all set to break new ground by issuing government bonds on a blockchain platform. according to reports. The issuance of government bonds on a blockchain platform will be a new beginning, the Ministry of Finance and the Tel Aviv Stock Exchange (TASE) said in a joint statement.
The pilot issuance of digital government bonds will be conducted by the digital-asset technology companies VMware and Fireblocks, Xinhua news agency reported, citing the statement, IANS reported.
As part of the issuance, leading international and local banks will participate in a live test, during which they will be connected to a dedicated blockchain system.
The new platform for the trading and clearing of digital assets, based on the innovative technologies of blockchain, smart contracts, and tokenization, will be developed by TASE and selected technology vendors.
The introduction of the new project is motivated by the developments in the financial markets in recent years, the statement said.
Interestingly, Bloomberg Intelligence reported earlier this year that there are deep resemblances between bitcoin (BTC) and United States Treasury bonds and gold. The finding was that macroeconomic actions like the US Federal Reserve's monetary policies have resulted in similarities in Treasury bond markets and bitcoin:
"Tightening markets and plunging global growth support the Federal Reserve's shift to a 'meeting by meeting' bias in July, which may help pivot Bitcoin toward a directional tilt more like US Treasury bonds than stocks," the report had said.