Commerzbank, BASF trial blockchain programmable money

Friday 21 May 2021 10:08 CET | News

Commerzbank has partnered with chemical firms BASF and Evonik for a joint blockchain project.

The project involved using programmable money or cash on ledger to verify, pay, and log supply chain payments in a fully automated manner. The pilot project was in a live environment and the relevant data was transmitted to the Commerzbank blockchain with the help of supply chain integrator Elemica, according to Ledger Insights. A tamper-proof record of the business process and data was registered on the blockchain to trigger the automated payment.

The partners plan to expand the project and incorporate additional supply chain partners.

Still, the challenge is that all parties have to use Commerzbank’s e-money or cash on ledger. And they may not all use Commerzbank. The German Banking Industry Committee (DK) recently published a paper calling for a standard for token-based bank money, ideally from the European Central Bank. If such standards existed, it would be possible to make different bank tokens interoperable.

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Keywords: blockchain, smart contracts, payment processing, banks, supply chain finance
Categories: Banking & Fintech
Countries: Germany
This article is part of category

Banking & Fintech