German central bank tests blockchain solution to counter CBDC

 

German Bundesbank tested blockchain-based settlement interface for electronic securities. The test shows that new technologies and traditional payment systems can work to settle securities in central bank money without relying on central bank digital currency (CBDC).

 

Together with Deutsche Börse and German Finance Energy, the Bundesbank announced on Wednesday that, for demonstration purposes, the test generated 10-year government bonds issued using distributed ledger technology (DLT), followed by trading in the primary and secondary markets , settlements for which are carried out in the same system.

 

He then developed a “trigger solution” and connected the DLT securities system with the major payment system eurosystem TARGET2. In this interface, a “trigger” is initiated when a transaction has been settled in the DLT system, signaling to TARGET2 that money can change hands.

 

A number of market participants took part in the project, including Barclays, Citibank, Commerzbank, DZ Bank, Goldman Sachs and Société Générale.

 

CBDC debate in Eurozone

 

According to the Bundesbank, this process conflicts with blockchain-based calculations using CBDC, which will tokenize assets and money.

 

The statement claimed that this solution can be replicated and scaled up in a short amount of time compared to the time it would take to release the CBDC.

 

Unlike its counterparts in other countries such as France and the Netherlands, the Bundesbank was rather reluctant to launch the digital euro, arguing that it would destabilize the banking system and punish depositors.

 

This is important as it can be assumed that the Bundesbank will have a significant influence in the negotiations on the development of the digital euro, since the German economy is the largest in the eurozone.

 

The European Central Bank (ECB) has tried to convince Germany's central bank of the merits of the digital euro, and officials said Thursday that such a currency will be designed to ensure it will not compete with bank deposits.

26 March, 2021
243
views

Read more:

Bank of America considers DeFi "potentially more disruptive than bitcoin"

19 March, 2021

Wall Street Optimism Close to Giving First Sell Signal since 2007

02 March, 2021

Apple could grow another 25% by adding cryptocurrencies to its Wallet app

09 February, 2021

Legendary venture capitalist Bill Gurley wants to ban the order flow practices that underpin Robinhood

02 February, 2021

Tesla will climb 8% to an all-time high of $ 900 as stock rallies help boost fundraising.

12 January, 2021

Global Stocks Rise After UK Travel Rules Eased

29 December, 2020

Three trend reversals that will define the market in early 2021

22 December, 2020

Modest market return in 2021 could disappoint worried investors

15 December, 2020

One stock market valuation indicator reached the highest point

08 December, 2020

Sino Biopharm Shares Down 14% In Hong Kong

01 December, 2020

Goldman Sachs Group Inc. plans to create a European stock trading platform

24 November, 2020

Encouraging results from Moderna vaccine trials have renewed hope in the tourism sector. #INDU

17 November, 2020

Oil prices fall on the eve of progress in the creation of the Covid-19 vaccine

10 November, 2020

US equities rose on Monday

03 November, 2020

Asia will be resistant to the second wave of coronavirus.

28 October, 2020

Oil prices fall for the fourth day

20 October, 2020

World stock indices are showing growth again. GOLD

13 October, 2020

Arrange a call