The Central Bank of Germany is developing Blockchain technology.
Blockchain continues innovating in every aspect of the economy world, for some time already many central banks of several countries have decided to adopt this new technology that has revolutionized the world and Germany has decided not to be left behind.
Deutsche Bundesbank, in partnership with Deutsche Börse, has revealed a functional blockchain prototype that trades securities. The Deutsche Börse Group, a marketplace organizer for settling shares and other securities, said the platform is more efficient than traditional standards.
Deutsche Bundesbank and Deutsche Börse say they have built a blockchain application. The two organizations have also been researching and developing this technology for quite some time. Together they plan to further develop the distributed ledger prototype this year and its development will be focused on analyzing the technical benefits and scalability of the software.
“With the blockchain prototype, the Deutsche Bundesbank and Deutsche Börse want to work together to find out whether this technology can be used for financial transactions, and if so, how this can be achieved.” “Deutsche Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology in order to assess its potential,” Detailed Carl-Ludwig Thiele, Member of the Deutsche Executive Board of the Bundesbank.
Deutsche Bundesbank and the Frankfurt School of Finance & Management focused on discussions concerning blockchain innovation and regulatory policy.
The prototype uses Hyperledger but is not yet ready for the market. Carsten Kengeter, CEO of Deutsche Börse AG said the two groups are addressing “potentially radical technological opportunities” in the world of finance.
“We will continue to do our utmost to leverage blockchain’s efficiency potential and to better understand and minimize the associated risks of this technology,” Kengeter added.
Both organizations Deutsche Börse and Deutsche Bundesbank note the platform is far from “market-ready” and it is just a proof-of-concept at the moment. Currently, the project boasts blockchain-based security transfers that offer both immediate and delayed payment structures. The framework is designed for identity and regulations with Hyperledger Project architecture.
The German prototype aims to create a more cost-efficient and immutable environment for securities of all kinds. One thing is for sure; central banks worldwide are laser-focused on blockchain technology.
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