Blockchain could help fuel a broader digitization drive in finance, according to the head of Germany’s central bank.
Bundesbank president Jens Weidmann spoke yesterday during an appearance at a G20 summit in Berlin. There, he highlighted the tech’s potential to make financial markets and services faster, convenient and cheaper, while also noting the shifts brought about by tech advances in AI advisory services and crowdfunding.
He told attendees:
“The question of whether digitalization will lead to a revolution in financial services and infrastructure, as some commentators argue, remains unanswered for the time being, in my view. However, one certainly can’t deny that new technologies like blockchain, robo-advisors or crowd funding could have the potential to make financial markets and services faster, more efficient, more convenient, and more inexpensive for everyone.”
The comments come shortly after another appearance by Weidmann in which he spoke about blockchain. In late January, Weidmann referred to the tech as a “multi-purpose tool”, highlighting recent research it has conducted on the subject.
Specifically, the German central bank has developed a prototype securities trading platform with exchange operator Deutsche Borse AG. Dating back to November, the project has been called promising by Bundesbank officials though they’ve noted it is “still presenting many challenges” in terms of implementation.
During his speech, Weidmann notably suggested that there is a need for new fintech-focused regulation.
“This calls for the regulation of fintechs, at least to a certain extent. A lot of corporations using technology-enabled financial innovations operate either on a global scale or carry out a large number of cross-border transactions,” he said.
Image Credit: Jochen Zick/Flickr