The stock exchange authority in Tel Aviv and Israel’s ministry of finance is set to complete the pilot program in the first quarter of 2023.
TASE (Tel Aviv Stock Exchange), in collaboration with the Ministry of Finance of Israel, VMware, a software solution development firm in the United States, and FireBlock, a digital asset custody provider, set to perform the test running of a Blockchain-based medium for trading digital stocks. The federal ministry of finance of Israel is the body that provides these stocks.
Why Is Israel Developing A Digital Bond?
The news was released on the 19th of October. The project is named “Eden.” The principal aim of developing the project is to minimize the cost of national bonds. The project also looks to optimize the processes of acquiring national stocks in the country.
The news came out to the public through Yali Rothenberg, the Accountant General of Israel. He mentioned that he believes technologies built on the blockchain network will eventually become part of our lives.
He continued that blockchain-based innovations will penetrate the influential components of the economy and financial industry and will significantly impact them. He further stated that he and the ministry of finance are responsible for frequently checking and updating innovative tech and methods.
While the test-running project is ongoing, all financial entities involved will be given a fresh set of tokenized government stocks on their online wallets through the project medium. The funds held in digital currencies will then be directed into the online wallet of the federal authorities of Israel.
Currently, there are no details about the digital asset used during the live testing. The authorities hope to conclude the project by the end of the first quarter of 2023.
Who Started The Bond Digitalisation Move?
Not many nations or international bodies have successfully digitalized the stocks. In 2018, Australia’s Commonwealth Bank and the World Bank for Development and reconstruction pioneered this project.
These projects generated $110 M for two-year blockchain stocks. The investment Bank of Europe made the same move as it invested 100M Euros in digital stocks.
Despite El Salvador being the most well-known national instance, which links its “Bitcoin bonds” to a bigger crypto-centered economic plan, Colombia and the Philippines have also dabbled with implementing digital government stocks. The United Kingdom declared its objective to investigate blockchain for government assets in 2022.