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 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.
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