DeFi
Slovenia issues Europe’s first digital sovereign bond
The $30 million bond was settled through the tokenized cash payment system of Banque de France and BNP Paribas.
Slovenia became the first European Union country to issue an on-chain digital sovereign bond.
The €30 million, or $32.5 million, bond issue on July 25 is part of an experimental program by the European Central Bank (CeBM). The settlement was made through the Banque de France’s tokenized treasury solution and was coordinated by BNP Paribas.
Slovenian digital bonds offer investors a yield of 3.65%, which is the coupon of the bonds minus the interest costs of the short-term loan. The final maturity rate was set for November 25.
It’s an exciting time in Europe for cryptocurrencies. The region is preparing for its landmark The regulatory framework for crypto-asset markets (MiCA) and, what seemed unlikely a few years ago, its central banks are gradually moving towards a blockchain-powered future.
With a population of 2.1 million, Slovenia is one of the smallest countries in Europe, although it has played a significant role in attracting cryptocurrency investors and businesses. Ljubljana, the capital, was named the most crypto-friendly country in 2022, and the country does not levy VAT or capital gains tax on digital assets.
According to According to research firm CoinCub, the country ranks 16th in terms of regulation, taxation, ecosystem, talent, and financial factors favorable to cryptocurrencies. CoinCub places Switzerland at the top, followed by Singapore, the United Arab Emirates, and, most importantly, the United States.