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Germany Creates a Bridge Between Blockchain and Euro

It was revealed that German authorities have created a technology that will permit investors to buy and sell securities on the blockchain in return for central bank money. This basically has created a gap between the two worlds that, not so long ago, seemed impossible to connect.

Institutions around the world, both private and public, have been working on using distributed ledger technology (DLT) to settle trades in official money. DLT is famous for being the source that powers Bitcoin and all other cryptocurrencies.

The Bundesbank partnered with Deutsche Börse and the German government’s debt agency for this project and revealed today that the solution they came up with is the first that permits those who sell securities on the blockchain to receive their proceeds on their account at the central bank.

It is expected that the technology could be used all across the Eurozone and that that will happen even before the digital euro is released.

“The participants have demonstrated that it is possible to establish a technological bridge between blockchain technology and conventional payment systems to settle securities in central bank money with no need to create central bank digital currency,” declared the Bundesbank.

As part of the test, a 10-year government bond was issued on the blockchain and traded in test-mode by six banks: Barclays, Citibank, Commerzbank, DZ Bank, Goldman Sachs, and Société Générale.

Source: Reuters
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