Germany Blockchain Test

Hey FintekNews followers, lets sneak a peek at what’s going on in Germany, specifically their central bank. Seems that they have been testing blockchain trading and some of the test results are in. What did they find? Blockchain is promising but complicated. Wow! I could have told them that for a fraction of what the study cost.

A few months ago the Deutsche Bundesbank (Central Bank) said it was working with exchange operator Deutsche Borse to test securities trading using blockchain technology to exchange digitized securities. It was supposed to be just a conceptual study but the Bundesbank found that there was great promise in the technology. However, a lot of work and refinement to allow this innovation to get to the point od commercial scale. May not be market ready yet, but at least they are involved which is a great step in the right direction.

”For Germany’s central bank, blockchain has proven to be a promising – if somewhat complicated – technology.

In late November, the Deutsche Bundesbank announced that it was working with exchange operator Deutsche Börse on a securities trading trial, using blockchain as a means of exchanging digitized securities, while also creating a record of those transactions. At the time, the central bank described the test as “purely a conceptual study”.  

New comments from Bundesbank executive board member Carl-Ludwig Thiele have shone a light on some of the results from that test. Thiele was speaking during a G20 conference on financial technology and innovation, an event that has seen other central bank figures, including Bundesbank president Jens Weidmann and Bank of England chief Mark Carney, remark on the tech. 

While both Weidmann and Carney spoke largely in broad strokes, it was Thiele who dove a bit deeper into some of the work the Bundesbank has been undertaking on the blockchain front.

According to Thiele, the system “works” – but will require some refinement if it’s ever to reach a point of commercial scale, describing it as “far from being market-ready”.’

Read Full Article at CoinDesk