According to Odaily Planet Daily, British Finance Minister Tulip Siddiq is pushing the UK to issue digital gilt bonds on the blockchain. However, the Debt Management Office (DMO), which is responsible for issuing and managing government bonds at the Ministry of Finance, opposes the move. Officials said Siddiq is determined to move forward to combat the risk of the UK being left behind by its global peers.
Traditional bonds have moved from paper to electronic trading, while digital bonds are issued and traded using blockchain technology. Supporters say the technology can improve efficiency and reduce costs. BlackRock CEO Larry Fink hailed it as the "next generation" of financial markets.
But blockchain-based bond issuance is still in its infancy and accounts for only a small portion of the market. Experts say the systems being developed now may not be the same infrastructure that will eventually prevail. A finance ministry official said there is resistance to reform, but Tulip believes that is the goal in the long run.
