Germany is an active participant in the development of digital Euro.
Bundesbank did a project called Blockbaster in collaboration with Deutsche Börse on enabling securities transactions processing over DLT/ Blockchain technology.In spring 2021, a successful demonstration was conducted to assess the efficiency of using Distributed Ledger Technology (DLT) for financial transactions, in collaboration with Deutsche Börse, the Federal Finance Agency, and other market participants. The test aimed to establish a bridge between blockchain technology and the traditional TARGET2-Payment system, enabling the settlement of securities in central bank money without the need for central bank digital currency.
During the test, a 10-year government bond was issued on the blockchain and traded by six banks: Barclays, Citibank, Commerzbank, DZ Bank, Goldman Sachs, and Société Générale. The trades were settled on the blockchain through a “trigger chain” that linked the assets on the distributed ledger with the euro zone’s payment system, Target 2.
The detailed study, titled “How can Collateral Management benefit from DLT,” can be accessed here.
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