Israel's government is preparing to issue government bonds using a blockchain technology platform, the Tel Aviv Stock Exchange (TASE) said on Wednesday.
Implementation of advanced technologies such as blockchain, the TASE said, would reduce costs, shorten the duration issuance and clearing of government bonds, improve transparency and mitigate risks.
The issuance is still in the planning stage and the Finance Ministry and TASE are examining an application for the sale of digital government bonds on a blockchain platform.
Israel's Accountant General and the TASE said they were motivated by developments in financial markets in recent years, including using the Blockchain Distributed Ledger Technology (DLT) as well possible issuance of central bank digital currencies.As part of a pilot issuance, local and foreign banks will participate in a live test and will be connected to a dedicated blockchain system that will be developed by the TASE and private companies. The issue will ultimately be in digital currency and transferred to electronic wallets.