According to Odaily, the United Kingdom is preparing to issue digital government bonds within the next two years. This initiative is expected to be announced by Chancellor Rachel Reeves during her speech at Mansion House in London's financial district on Thursday. Traditionally, this forum is used by the Chancellor to unveil policies supporting the financial sector.
The new Labour government is focused on modernizing financial markets and is currently exploring the use of blockchain technology to 'tokenize' government debt. This approach aims to make the trading of government bonds faster and more cost-effective. As the UK undergoes a digital transformation, the government is embarking on a borrowing plan of £297 billion ($382 billion), marking the second-largest borrowing initiative in its history. Sales are anticipated to remain high in the coming years.
Insiders suggest that legislative approval from Parliament may be required to proceed with blockchain-based sales. The UK Treasury has declined to comment on these developments.