UK Financial Minister Advocates Blockchain-Based Digital Gilts

According to Odaily, UK Financial Minister Tulip Siddiq is advocating for the issuance of 'digital gilts' on blockchain technology. However, a former minister and several department officials familiar with the discussions revealed that the Debt Management Office (DMO), responsible for issuing and managing government bonds, opposes this move. Officials stated that Siddiq is determined to push forward to prevent the UK from falling behind its global peers. In recent decades, traditional bonds have largely transitioned from paper to electronic trading. Digital bonds differ in that they are issued and traded using blockchain technology. Proponents argue that this technology can increase efficiency and reduce costs by eliminating intermediaries. BlackRock CEO Larry Fink has hailed it as the 'next generation' of financial markets. Despite this, the use of blockchain for bond issuance is still in its infancy and represents only a small portion of the market. Experts note that multiple systems for issuing digital bonds are currently under development, suggesting that today's infrastructure may differ from what ultimately prevails. A Treasury official briefed on the discussions stated, 'There has always been some resistance to reform, but Tulip believes there is no specific reason not to proceed. In the long term, this is the goal we aim to achieve. We risk falling behind other regions of the world.'