Central Bank of Germany Reveals Functional Securities Blockchain

The German central bank 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.

Also read: Gambling-Inspired Bitcoin Chips May Appeal to Chinese Market

German Central Bank Is Developing Blockchain Technology for Securities

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. 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,” detailed Carl-Ludwig Thiele, Member of the Deutsche Bundesbank’s Executive Board. “Deutsche Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology in order to assess its potential.”

The blockchain platform news follows the central bank-hosted four-day blockchain workshop event called “Blockchain Technology – Opportunities and Challenges.” Deutsche Bundesbank and the Frankfurt School of Finance & Management focused on discussions concerning blockchain innovation and regulatory policy.

Prototype Uses Hyperledger but Is Far From ‘Market-Ready’

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.

The prototype is the first draft stemming from the two organizations’ R&D efforts. 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.

What do you think about the German central bank utilizing blockchain technology for security trades? Let us know in the comments below.

Images courtesy of Shutterstock, Deutsche Bundesbank and the HyperLedger Project

Do you want to talk about bitcoin in a comfortable (and censorship-free) environment? Check out the Bitcoin.com Forums — all the big players in Bitcoin have posted there, and we welcome all opinions.

The post Central Bank of Germany Reveals Functional Securities Blockchain appeared first on Bitcoin News.