The German central bank is working on a blockchain project, but it is not a CBDC

Written by on 6. November 2020 in Bitcoin

Deutsche Bundesbank has teamed up with Ocean Protocol to develop a decentralised network for data sharing.

According to a public notice published in the Supplement to the Official Journal of the European Union, Ocean Protocol, a non-profit organisation based in Singapore, has been hired to establish a decentralised network on behalf of Deutsche Bundesbank, the German central bank.

Bundesbank explained that it chose Ocean Protocol, a project of relatively limited fame, because it is the only possible contractor for this work, citing a „lack of comparable competitors“.

In its public notice, Bundesbank stated that the primary aim of the project is to create „a decentralized network, allowing participants to access data permanently and symmetrically, so that statistics can be updated in real time while preserving data sovereignty“.

The institution will collaborate with Ocean Protocol to create a Bitcoin Billionaire platform for the publication, transfer and consumption of both public and private data.

It appears that the German central bank is looking for alternative digital payment methods to CBDCs, due to the risks that such instruments could pose to financial stability. Collaboration with Ocean Protocol may be the first step towards an alternative instrument.

In July this year, Ocean Protocol announced that it has partnered with German car manufacturer Daimler AG to implement a pilot project to collect and share information using blockchain technology. „We believe in the power of blockchain to unlock the value of data in a decentralised way,“ commented Hartmut Muller, Vice President of IT at Daimler.

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