German authorities have developed technology allowing investors to buy and sell securities on the blockchain in return for central bank money, bridging a gap between two worlds that once seemed irreconcilable.
Private and public institutions around the world have been experimenting with using distributed ledger technology , best known for powering Bitcoin and other cryptocurrencies, for settling trades in official money.The Bundesbank, which partnered with Deutsche Börse and the German government's debt agency for this project, said on Wednesday its solution was the first allowing those who sell securities on the blockchain to receive their proceeds on their account at the central bank.
"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," the Bundesbank said.
There is no advantage of this “blockchain” over a centralized database. It’s just a distraction from Bitcoin.
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