Bundesbank prepares electronic securities processing in Germany

Friday 26 March 2021 15:11 CET | News

The German Bundesbank has announced that a test run for a new digital bond purchase processing was successful.

The processing of electronic securities is also possible in conventional payment transactions. The Bundesbank, Deutsche Börse and the Federal Finance Agency, together with several major international banks, have tested a new process for processing digital bond purchases, as the Bundesbank announced in Frankfurt on 24 March 2021.

The test run showed that it is possible to combine conventional payments blockchain technology. The major banks Barclays, Citibank, Commerzbank, DZ Bank, Goldman Sachs, and Société Générale took part in the test. In this test, the Federal Finance Agency issued an electronic federal bond on a blockchain system. When processing the purchases, a specially created interface was used between the blockchain process and conventional payment transactions. Securities and central bank money were only successfully transferred when all parties involved had confirmed the transaction. This is intended to limit the contingency risk for buyers and sellers. 

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Keywords: banks, mobile payments, payment processing, blockchain
Categories: Banking & Fintech
Countries: Germany
This article is part of category

Banking & Fintech