$6.6 trillion of debt is being issued p.a. now the Chinese are using Blockchain technology to issue bonds.
China has recently issued $2.8 billion using Blockchain technology. Will the cost of issuing Chinese bonds fall as the Chinese government use a Blockchain-powered platform?
How long will it be before investors in these digitally issued Chinese bonds are paid interest on this debt in a Chinese digital currency using a form of Smart Contract?
China is not the first country to use Blockchain technology to issue bonds, as Japan did so in 2017 by issuing $800,000+ on debt using this technology. The use of Blockchain-powered platforms offers the promise of lowering the cost of issuing bonds ,while improving efficiency and security as governments move from a largely paper based analogue systems. It gives governments more control and by having its own central bank digital currency, like the Chinese are potentially launching soon a tighter grip its financial sector and economy……