Europe has finally decided to go crypto. Recently the European Investment Bank (EIB) announced the launch of its first digital bond registered on the Ethereum network.
It is not a small investment at all – we are talking about 100 million euros (around 120 million dollars). The impact of the announcement by the European Union’s investment branch was immediate: a new all-time high for Ethereum.
The EIB Ethereum Digital Bond: Why Is It A Milestone?
Ethereum is the second-largest cryptocurrency behind bitcoin. And for a good reason. Ethereum filled all the gaps that bitcoin could not. So Ethereum was due for another historic achievement.
The announcement took place on April 27th. And truth be told, the timing was perfect. Bitcoin’s dominance was in a free fall, struggling at $55,000. Meanwhile, Ethereum started to rally, breaking every resistance imaginable on it’s way to $2,700 the same day. And it hasn’t stopped since.
This event is a major milestone for the entire market, not only for ETH holders. Ethereum remaining bullish and the dominant bitcoin still bearish can only mean one thing: more money will flow into altcoins.
The Bond Itself and Its Backers
The bond is worth 100 million euros (about $120 million.) It will have a two-year duration, which means it will expire on April 28, 2023. The project was selected by Banque de France as part of its Central Bank Digital Currencies sphere. Goldman Sachs, Banco Santander, and Société Générale will oversee the sale of the bond.
The bond will also be governed by French law. It’s biggest advantage is that both Societe Generale and Banco Santander have already experimented with bonds on the Ethereum network in 2019. Both experiments yielded positive results which give even greater expectations to the EIB bonds.
Mourinho Felix, vice president of EIB, claims that innovation goes far beyond the projects they seek to support. He says the EIB, as market leaders, is fully capable of issuing digital bonds on the blockchain. These words from Felix give a glimpse of hope that the EIB will continue to experiment with digital bonds and crypto in general.
While it’s just a beginning, EIB has done Ethereum a great favor: they proved that its usefulness is immense. It is already undeniable. Now we have yet another reason to be bullish on Ethereum’s future. While it’s only a matter of time, the EIB may have unlocked new price potential and possibilities for ETH.