Since the emergence of blockchain technology and Bitcoin, the world has been reshaped to look at things from the digital perspective. Even though we had seen some significant improvement in the sector before they entered, it is safe to say that they have changed the way we view the financial sector.
In a larger boost to the financial sector, the European Investment Bank has made a new announcement to give their investors and users chills. According to the Bank, they have made a new move to issue binds through blockchain technology. In the report submitted by Bloomberg, the bank is set to partner with other high-ranked banks such as Goldman Sachs to look into ways to issue bonds tied to the Euro on blockchain technology.
Blockchain-based bonds settlements would be ten times faster
Taking the words of a person familiar with the way blockchain technology works, Bloomberg mentioned that the EIB wants to take advantage of the technology to aid its registration and settlement issues relating to digital bonds.
The meeting to look at the potential before investing would have various investors sitting and is set to take place on Thursday, running through the following weeks. Even though the news has taken over will social media at this time, the EIB has failed to confirm or deny the report.
The bond market has seen a big use on blockchain in the last few years, with most entities choosing to use either the Bitcoin blockchain or the Ethereum blockchain. In the words of HSBC, blockchain has provided a very good way to help them reduce cost up to 10x the previous amount spent and eliminate some intermediaries that are not needed. Also, blockchain has been able to help smaller projects enter the foray and issue bonds.
The ECB might be considering a digital euro soon
Standing as the financial arm of the European Union, the EIB has been at the front when it comes to the development and modernization of the capital market around Europe. Around 2007, the EIB made history across the entire world when it announced that it had issues described as a green bond. In their statement at the period, the green bond was supposed to serve as an environmentally conscious effort on their part.
This latest news is also coming off the back of the recent news that the European Cents Bank might be looking into their options to create a digital euro. Christine Lagarde, the president of the bank, previously stated that should they begin the initiative, it would last them about four years before coming up with something very special.
At this time, China is still at the forefront of digital currencies across the world. The recent news coming out of the Asian country is that testing is currently ongoing in Hainan province after previous tests in Shenzhen and other parts of the country.