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


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown