Summary
- The Czech National Bank said it issued its first koruna-denominated bond using blockchain and distributed ledger technology (DLT).
- It said the test successfully covered trading and settlement, including bond transactions, interest payments and repurchase agreement (Repo) transactions.
- The Czech central bank governor said the test is a step toward preparing the financial infrastructure of the future.
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The Czech National Bank has issued its first bond using blockchain technology.
Cointelegraph reported on November 15 that the central bank used distributed ledger technology, or DLT, to issue a bond denominated in Czech koruna and successfully complete trading and settlement tests.
The test was carried out through CNB Lab, the central bank’s financial innovation project. Each bond had a face value of 10,000 koruna, or about $290. The trial covered bond trading, interest payments and repurchase agreement, or repo, transactions. Settlement was completed almost in real time.
Governor Aleš Michl said the central bank is conservative in monetary policy but should be innovative in all other areas. He added that the test marks another step in preparing for the financial infrastructure of the future.