Deutsche Bundesbank Ridicules Blockchain: “Not A Breakthrough Tech”

The central bank of Germany, Deutsche Bundesbank, is in the coming altcoin news for its pessimistic view towards blockchain despite the increased adoption that the technology has experienced in many sectors.

Official statements made in Frankfurt on May 29 show the Deutsche Bundesbank President Jens Weidmann claiming that a trial project to integrate the blockchain tech failed miserably. Instead of improving the bank’s operations, blockchain was actually slower and costly which led the Bundesbank president to conclude the technology and say that it failed to bring a “breakthrough” to the banking industry.

As the latest cryptocurrency news show, this trial project was actually a joint effort between the Deutsche Bundesbank and the Deutsche Boerse which was launched in 2016, concluding at the end of last year. Despite the fact that the prototype managed to fulfill all of the “basic regulatory features” for the financial transactions, the implementation of blockchain failed and proved very expensive and slow relative to the standard.

“The blockchain solutions did not fare better in every way: the process took a bit longer and resulted in relatively high computational costs. Similar experiences have been made elsewhere in the financial sector. Despite numerous tests of blockchain-based prototypes, a real breakthrough in application is missing so far,” Weidmann noted.

Despite investor’s interest in cryptocurrency, many seem set on barring the technology from the industry. Deutsche Bundesbank is a major player in the equivalent of the US Federal Reserve – and their statement and doubt about the entire crypto and blockchain industry definitely has an effect towards the adoption of crypto and the European economic policy.

What’s good, as many best cryptocurrency news sites show, is the growing number of global central banks which are adopting distributed ledger technology (DLT) or praising its value. One of them is the European Central Bank and its executive Yves Mersch, who recently cautioned against policies that would stifle innovation, stating:

“Some of the technology is worth exploring and could also be of interest to central banks. That said, our role is not to drive technological adoption by the industry and the general public, but to ensure that changing preferences can be satisfied in a secure way.”