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Use of blockchain technology in issuing government bonds could transform debt markets, resulting in lower borrowing costs and innovative trading avenues, according to Lamine Brahimi, co-founder of digital assets company Taurus. Equally, Brahimi stressed the need to modernise securities laws to recognize blockchain-based securities. Meanwhile, despite objections from the UK’s Debt Management Office, city minister Tulip Siddiq is advocating for blockchain-based government bonds to modernize the UK’s debt markets.

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Government bonds issued using blockchain technology could soon be a thing and it’s set to change how debt markets operate. This might result in cheaper borrowing costs and new ways of trading these bonds.

Lamine Brahimi, a co-founder of Taurus, a company in the digital assets space, shed some light on what this can mean for debt markets. Brahimi thinks that if governments start using this tech in their bonds, it will make the markets more efficient, lower costs, and open up all sorts of trading possibilities.

Brahimi also made a point about updating local securities laws to recognized blockchain-based securities, acknowledging that this might be a challenge. He noted that if traditional bonds co-exist with the new digital ones, we might see the market dividing into two categories, each with its own pricing and liquidity.

Also in the news, Tulip Siddiq, UK’s city minister, is pushing for blockchain-based government bonds, despite receiving pushback from the UK’s Debt Management Office (DMO). While the DMO raises concerns about the technical and legal challenges, supporters argue that this tech could bring the UK debt markets into the modern age.

Source: Cointelegraph