German Bundesbank flirts with Blockchain technology

The German Bundesbank has announced a project with Ocean Protocol that will use Blockchain technology.

The Supplement to the Official Journal of the European Union reported that the German Bundesbank recently contracted Ocean Protocol with the aim of developing a decentralised network based on Blockchain. However, there are no indications that it is a CBDC.

Germany moves forward with a Blockchain solution

According to the public announcement, the Bundesbank’s main objective with the project is „a decentralised network approach (based on the Blockchain), allowing participants permanent and symmetrical access to data for real-time statistical updates, while preserving data sovereignty“.

This is how they chose Ocean Protocol, a non-profit foundation from Singapore, as they cited a „lack of comparable competitors“ and therefore it was the only possible contractor for the work.

In fact, Ocean Protocol is a big data blockchain platform that is designed to help developers build applications that can securely publish, transfer and/or consume public and private data.

Also, Ocean Protocol has a token called OCEAN that is designed to reward people and organizations that help drive the network.

However, at the moment information regarding the Bundesbank’s project based on the Blockchain is quite limited.

Not a CBDC, unlike the rest

The seed has already been planted in the international community of the need to use the Blockchain to launch a central bank digital currency (CBDC). Especially as a result of other countries moving ahead in the race.

Indeed, South Korea, Canada, Brazil, Japan, Thailand, China and France are in a race to build their own CBDCs using the Blockchain technology.

Just yesterday, Bank of Canada Governor Tiff Macklem called for a „globally coordinated“ effort to lead the development of a CBDC and prevent potential scams.

„If another country has one and we don’t, that could certainly create some problems. So we want to make sure we are ready,“ she said in an interview.

So it seems that the need to develop a CBDC comes from the FOMO on the part of governments and central banks. Mainly in the face of China’s dangerous progress on the issue. At first glance, however, it seems that Germany is not suffering from this.

It seems that Germany is interested in developing the Blockchain technology for other purposes as well. However, it is still a possibility in the future.