Germany’s central bank reports on potential of blockchain for payments

Bundesbank sees benefits in blockchain technology — Deutsche Bundesbank — “The Bundesbank’s experts see little prospect of DLT [distributed ledger technology] being put to widespread use in the field of individual and retail payments given the current state of the art… They see more potential for DLT in payments beyond the European currency area… There is currently no realistic prospect of central bank-issued digital currency being rolled out in the foreseeable future.”

  • One advantage of DLT is that it requires no central authority. It is unlikely that a reserve bank would promote it. A second advantage is anonymity. Again, not likely that a reserve bank would favor that it either. The disadvantages include that it is slow and does not scale well.

    Anonymity will ensure that crypto currencies continue in use but most payments do not require it.