Central Bank Denies Claim Blockchain Broadly Used in Estonia

The Estonian central bank has denied that the country’s banking system relies on the use of a blockchain to secure information.

AccessTimeIconAug 7, 2015 at 7:20 p.m. UTC
Updated Sep 11, 2021 at 11:48 a.m. UTC

The Estonian central bank has denied statements that have suggested the country’s banking system relies on the use of a blockchain to secure information.

One of the more curious observations included in documents recently released by the European Securities and Markets Authority (ESMA) was a submission from Deutsche Bank.

The letter, a response to ESMA's call for information on digital currencies, included the claim that the blockchain was already being widely used in the country's financial sector. The claim was cited by Deutsche Bank as an example of how blockchain technology is being used to solve complex problems in the world's financial markets.

When contacted for comment, Piret Putko, a representative for Eesti Pank, Estonia’s central bank, told CoinDesk that while there is activity among the country’s banks to develop products based on the technology, there is no nationwide effort to broadly integrate banking and the blockchain.

Putko noted:

“I guess that blockchain is expected to be put into operation in Estonia soon because one of our banks is developing new products which will be based on blockchain. But, it certainly does not give us the right to say that Estonian banking infrastructure is secured with a blockchain.”

He added that Deutsche Bank may have confused an existing card security system with the blockchain concept.

Putko's refers to ongoing projects at LHV Bank, a major domestic bank that has been conducting experiments with bitcoin and earlier this year developed a wallet product for the digital currency.

When reached for comment, bank representative Priit Rum echoed this sentiment, suggesting that the two systems had been confused.

“Although for example we at LHV bank are experimenting with blockchain - this infrastructure has not been used that thoroughly here [in] Estonia,” he said.

Estonian flag image via Shutterstock

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