And the influence this technology is likely to have extends far beyond the financial sector. The Deutsche Bundesbank operates large financial market infrastructures and also develops these further in line with technological advances. For this reason, we need to be aware of the potential benefits and risks of this technology early on.
Together with Deutsche Börse, we have developed a preliminary prototype for blockchain-based settlement. This prototype has the following capabilities: Settling payments based on blockchain technology, Transferring securities, Processing basic delivery-versus-payment transactions, where securities purchases are settled and paid for simultaneously, and Processing basic corporate actions, such as coupon payments on bonds and redemptions of maturing securities.