- BNP Paribas and the tokenized cash system of the Bank of France were used to settle the $30 million euro bond.
The first nation in the European Union to issue a sovereign digital on-chain bond was Slovenia.
The July 25 bond, valued at $30 million euros or $32.5 million, is a component of the European Central Bank’s experimental initiative dubbed the wholesale central bank money (CeBM) plan. BNP Paribas oversaw the settlement, which was made possible by Bank of France’s tokenized cash solution.
Investors that purchase Slovenia’s digital bond will receive a carry return of 3.65%, which is equal to the bond’s coupon less the short-term borrowing expenses’ interest. A final maturity rate has been determined for November 25..
The cryptocurrency scene in Europe is booming right now. The area is preparing for the historic Markets in Crypto Assets (MiCA) regulatory framework, and its central banks are slowly moving toward a blockchain-powered future—something that only appeared improbable a few years ago.
Slovenia is a minor European nation with 2.1 million people, yet it has played a significant role in drawing in cryptocurrency businesses and investors. The capital, Ljubljana, was voted the most crypto-friendly nation in 2022, and there are no capital gains or VAT taxes applied to digital assets in this nation.
The nation is ranked 16th in the world for talent, money, ecosystem, taxation, and legislation that are favorable to cryptocurrencies, according to research firm CoinCub. CoinCub initially lands in Switzerland, then in Singapore, the United Arab Emirates, and most notably, the United States.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
