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The Republic of Slovenia has made history by issuing its inaugural digital bond, marking a significant milestone as the first European Union sovereign nation and one of the first worldwide to undertake such a transaction. According to the <a href="https://www.gov.si/en/news/2024-07-26-the-republic-of-slovenia-issues-its-inaugural-digital-bond/" rel="noopener noreferrer nofollow">announcement</a>, this groundbreaking move occurred as part of the European Central Bank’s program to experiment with wholesale central bank money settlements.
<h2 id="b-slovenia-committed-to-using-digital-financial-instrument-b">Slovenia Committed to Using Digital Financial Instrument</h2>
Slovenia’s digital bond settlement was completed on the blockchain, using wholesale central bank digital money. This innovative process was made possible through Banque de France’s interoperable and tokenized cash solution, showing the increasing integration of blockchain technology in financial operations.
Meanwhile, Slovenia has issued a digital bond worth EUR 30 million with a 3.65% interest rate. The bond will mature on November 25, 2024. Likewise, this issuance demonstrates Slovenia’s commitment to using digital financial instruments and reflects the changing landscape of global sovereign debt markets.
<h2 id="b-italian-bank-uses-polygon-for-digital-bond-trials-b">Italian Bank Uses Polygon for Digital Bond Trials</h2>
Using Ethereum’s layer-2 solution, Polygon, Italy’s state-owned bank Cassa Depositi e Prestiti SpA <a href="https://thecoinrise.com/major-italian-bank-uses-polygon-for-digital-bond-trials/" rel="noopener noreferrer nofollow">effectively completed a $27.2 million digital bond issuing</a>. The trial started when the European Central Bank investigated fresh ideas for central bank money settlement of wholesale transactions conducted on blockchains. This major transaction required the cooperation of the trillion-dollar investment bank Intesa Sanpaolo.
Since Italy passed its FinTech decree law, which controls the distribution and issuing of financial instruments in digital form, this issuing marks the first of its sort. Valued at 25 million euros, the bond has a fixed yearly coupon rate of 3.63% and matures over four months ending November 18, 2024. Notably, the trial had only one institutional investor: <a href="https://group.intesasanpaolo.com/en/newsroom/press-releases/2024/07/cdp-successfully-issues-its-first-digital-bond-on-blockchain-int#" rel="noopener noreferrer nofollow">Intesa Sanpaolo</a>.
<h3 id="b-central-banks-and-cbdcs-b">Central Banks and CBDCs</h3>
The ECB has been actively <a href="https://thecoinrise.com/ecb-digital-euro-project-scales-to-preparation-phase/" rel="noopener noreferrer nofollow">developing a digital version of the euro</a>, having completed its investigation phase to determine its design and technical details. The project aims to ensure that central bank money remains relevant in the digital age.
Likewise, the ECB expects to finalize the digital euro project by October 2025, aligning with the growing trend towards digitization of the financial sector. Meanwhile, the central banks of Sweden and Israel have shown interest in CBDCs, with the former concluding its <a href="https://thecoinrise.com/sweden-central-bank-publishes-final-report-on-cbdc-project/" rel="noopener noreferrer nofollow">digital krona pilot project with the release of its final report.</a> On the other hand, the Bank of Israel <a href="https://thecoinrise.com/bank-of-israel-claims-cbdc-competition-is-good-for-economy/" rel="noopener noreferrer nofollow">does not view CBDCs as a threat</a> but as a means of innovation.
The post <a href="https://thecoinrise.com/slovenia-issues-digital-bond-as-part-of-the-ecb-program/" rel="noopener noreferrer nofollow">Slovenia Issues Digital Bond as Part of the ECB Program</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Slovenia Issues Digital Bond as Part of the ECB Program

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Další články publikované 29. 7. 2024

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