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Blockchain settlement solution trials proved expensive and slow, Bundesbank president says

Carol Gaszcz
The Bundesbank and Deutsche Boerse ran a trial project using blockchain technology, and its conclusions are not optimistic, Bloomberg writes.The post Blockchain settlement solution trials proved expensive and slow, Bundesbank president says appeared first on The Block.

The Bundesbank and Deutsche Boerse ran a trial project using blockchain technology, and its conclusions are not optimistic, Bloomberg writes. As Germany’s central bank president Jens Weidmann explained, the use of a blockchain solution to transfer and settle securities and cash did not give satisfactory results. Although it met “all basic regulatory features for financial transactions,” it did not deliver a faster and cheaper solution.

“The blockchain solutions did not fare better in every way: the process took a bit longer and resulted in relatively high computational costs,” Weidmann said in Frankfurt.

Weidmann claimed tests run by other financial institutions have yielded similar results. “Despite numerous tests of blockchain-based prototypes, a real breakthrough in application is missing so far,” he said.

Weidmann has also spoken against central bank digital currencies, saying their introduction could lead to destabilisation of the financial systems.