Global cryptocurrency exchange site Currency.com recently announced that it will soon be offering Belarussian government bonds in token form.
Tokenized Government Bonds
According to a press release, the Belarus-based organization Currency Com Bel LLC is the first company to carry tokenized government bonds. Its new offering means users can use cryptocurrencies like bitcoin (BTC) and ethereum (ETH) or even fiat money to invest or trade in Belarussian bonds.
Just like other cryptocurrencies, investors can only buy fractional amounts of the new Belarussian token. These tokens are initially offered on the exchange platform at a price of $1,000 a token. One token is equal to one bond. The exchange will primarily introduce 252 bonds available that come with a 4.2% yield per annum.
Viktor Prokopenya, the co-founder of Currency.com, credits Decree No. 8 for making this move possible. The said piece of Belarussian law was set in 2018 and provided specific guidelines for the rising blockchain industry.
Prokopenya said that the progressive decree, which is also known as “On the Development of a Digital Economy,” made it possible for the government to release those bonds. The legislation was ratified in 2018 and confirmed the European country’s commitment and drive to play a major role in the next stage of this technological shift.
However, Belarus isn’t the only country looking to integrate cryptocurrency technology with its government bonds. Austria’s national bank, the Oesterreichische Kontrollbank (OeKB), released about $1.35 billion worth of bonds on the Ethereum public blockchain during an auction held late last year.