Central Banking

DLT not ready for retail payments – Bundesbank

German central bank says retail payment systems are already sufficient to support fast transfers; DLT could be used to streamline global payment processes
bundesbank

There is “little prospect” of distributed ledger technology being put into widespread use in the field of retail payments in its current state, the Deutsche Bundesbank has concluded.

“The systems in operation have already been optimised for fast transfers and require a minimum of reconciliation, besides being able to process millions of transactions with ease every day,” the German central bank says.

The Bundesbank’s findings form part of an analysis that examines whether DLT holds any promise for the financial sector.

“Potentially, DLT offers a number of benefits on account of the distributed storage of data, which can eliminate reconciliation processes associated with complex work-sharing value-added chains,” the bank’s payment specialists write.

International payments could be one such avenue, as they often take longer because more intermediaries are involved than in the case of transactions within the euro area.

Payments conducted outside the eurozone are frequently settled through correspondent banking networks. “For payments like this, DLT could streamline a number of process steps, and offer faster and cheaper settlement for end-users,” says the Bundesbank.

 

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: