Slovenia Issues First EU Sovereign Digital Bond
Slovenia has launched a €30 million ($32.5 million) sovereign digital bond, marking a first for any European Union (EU) nation.
Issued on July 25, this bond is part of an experimental initiative involving the European Central Bank’s (ECB) wholesale central bank money (CeBM) program.
This digital bond was settled using a wholesale central bank digital currency (CBDC), a digital asset designed for financial institutions rather than the public. BNP Paribas played a key role in coordinating the bond, which was settled through the Bank of France’s tokenized cash system.
With an interest rate of 3.65% and a maturity date set for November 25, the bond reflects Slovenia’s growing embrace of digital financial technologies.
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The country has been increasingly supportive of digital assets, positioning itself as a notable hub for crypto investment. Ljubljana, Slovenia’s capital, was recognized in 2022 as one of the most crypto-friendly cities, thanks to favorable policies such as no VAT or capital gains tax on digital assets.
This move aligns with Slovenia’s broader goal of advancing financial technology and enhancing market transparency. The issuance also coincides with the EU’s development of the Markets in Crypto Assets (MiCA) regulatory framework, which aims to define the future of crypto markets as central banks explore blockchain technology.
The ECB’s recent trials with wholesale CBDCs, including the Slovenian bond issuance, are seen as crucial steps toward greater transparency and efficiency in financial markets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
