Germany’s Central Bank: Consumers not using Blockchain for payments

Germany’s Central Bank declares a new research paper centered on distributed ledger tech(DLT). Since, it is exploring its blockchain for payments, securities settlement and more.

Deutsche Bundesbank research writes that the tech offers a more benefits on account of the distributed storage of data. However, it highlights both potential opportunities and practical challenges.

The Central bank German noted that it doesn’t see much for rule for the tech in consumer payments, argues:

“The Bundesbank’s experts see little prospect of DLT being put to widespread use in the field of individual and retail payments given the current state of the art. Particularly for payments within the euro area, they argue, the systems in operation have already been optimizes for fast transfers and require a minimum of reconciliation, besides being able to process millions of transactions with ease every day”.

That says, the Bundesbank’s researchers keep saying that they see a potentially wider role in occurrences. It is in which users have to send their funds via multiple intermediaries.

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Also Read: Central bank of Kazakhstan develops blockchain mobile apps for securities

The researchers write, “International payments are often settles via correspondent banking networks. It means one banks has the partnered with another credit institution. Therefore by operating inside the currency area with which it intends to settle payments. DLT would streamline a number of process steps and offer faster and cheaper settlement for end users”.

The central bank forays a more attentive about applications in the area of securities settlement. Notably, the Bundesbank has previously undertaken a blockchain-based securities trading trial with exchange operator Deutsche Borse.

It is “still unclear whether DLT also has the edge over today’s technology in terms of security, efficiency, costs and speed”, according to the central bank.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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