{"id":209727,"date":"2021-03-24T16:14:59","date_gmt":"2021-03-24T13:14:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/german-federal-bank-runs-successful-blockchain-system-without-a-cbdc\/"},"modified":"2021-03-24T16:14:59","modified_gmt":"2021-03-24T13:14:59","slug":"german-federal-bank-runs-successful-blockchain-system-without-a-cbdc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/german-federal-bank-runs-successful-blockchain-system-without-a-cbdc\/","title":{"rendered":"# German federal bank runs successful blockchain system without a CBDC"},"content":{"rendered":"

“# German federal bank runs successful blockchain system without a CBDC <\/strong>”
\n<\/p>\n

Germany\u2019s federal bank, the Deutsche Bundesbank, has run successful tests on a project which bridges the traditional finance infrastructure with blockchain technology<\/a>. <\/p>\n

Despite the current global rush by central banks to familiarise themselves with\u00a0central bank digital currency\u00a0technology, the testing carried out by the Bundesbank, in conjunction with the Deutsche B\u00f6rse Group and the German Finance Agency, required the issuance of no CB, or any tokenized money at all. <\/p>\n

The system reportedly<\/a> relies on two software modules which form a connection between the Bundesbank\u2019s internal system and distributed ledger technology. Instead of creating a token-based system, the bank simply created an interface that initiates a \u201ctrigger,\u201d signifying that a transaction has been settled and that money can safely change hands. <\/p>\n

Germany has made no secret of the fact that it isn\u2019t too keen on a CBDC. That may be because the Bundesbank\u2019s position as the most powerful member of the European System of Central Banks makes it the organization with the most influence to lose. That\u2019s a sentiment that was echoed by German politician Burkhard Balz himself in 2020.<\/p>\n

Following the announcement of the Bundesbank\u2019s recent tests, Balz, who is also a member of the Bundesbank executive board, suggested the entire Eurosystem could adopt the technology in a much quicker fashion than it could launch a CBDC. <\/p>\n

\u201cFollowing successful testing, the Eurosystem should be able to implement such a solution in a relatively short space of time \u2014 at least in far less time than it would take to issue central bank digital currency, for instance,\u201d said Balz.<\/p>\n

As part of the testing, the German Finance Agency issued a 10-year federal bond via the DLT trigger system, while also testing securities trading on primary and secondary markets. The testing included participants from Citibank, Barclays, Goldman Sachs, Commerzbank, DZ Bank and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.<\/p>\n