A Tel Aviv Stock Exchange signal is seen in Tel Aviv, Israel
The Tel Aviv Stock Exchange (TASE) said on Wednesday that Israel’s government is preparing to issue government bonds using a blockchain technology platform.
TASE said that the implementation of advanced technologies such as blockchain will reduce costs, shorten the period for issuance and clearing of government bonds, improve transparency and reduce risk.
The issuance is still in the planning stage and the Ministry of Finance and TASE are investigating an application for the sale of digital government bonds on a blockchain platform.
Israel’s Accountant General and TASE said they were inspired by developments in financial markets in recent years, including using blockchain distributed ledger technology (DLT) as well as the 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 TASE and private companies. The issue will eventually be in digital currency and transferred to an electronic wallet.
