A digital programmable euro is essential for innovative business models in Germany, according to the Frankfurt School Blockchain Centre (FSBC). The FSBC is a think tank and research centre focusing on the business implications of blockchain. It published the “The Programmable Euro: Review and Outlook” report on behalf of the Finanzplatz München Initiative (fpmi), highlighting the use cases of the digital programmable euro, a blockchain-based euro that enables programmable payments. The study found that there was a growing demand for payment solutions that eliminate the inefficiencies of current infrastructures, such as the SEPA or TARGET2 systems. These systems were unable to address new business models due to complex data synchronisation processes, and
Topics:
Fintechnews Switzerland considers the following as important: 6c.) Fintechnews, Blockchain/Bitcoin, Featured, Germany, newsletter, payments
This could be interesting, too:
Guillermo Alcala writes USD/CHF slides to test 0.8645 support with US inflation data on tap
Swissinfo writes Swiss central bank posts CHF62.5bn profit
Nachrichten Ticker - www.finanzen.ch writes Trump-Faktor und Marktbedingungen könnten für neuen Bitcoin-Rekord sorgen
Charles Hugh Smith writes Is Social Media Actually “Media,” Or Is It Something Else?
A digital programmable euro is essential for innovative business models in Germany, according to the Frankfurt School Blockchain Centre (FSBC).
The FSBC is a think tank and research centre focusing on the business implications of blockchain.
It published the “The Programmable Euro: Review and Outlook” report on behalf of the Finanzplatz München Initiative (fpmi), highlighting the use cases of the digital programmable euro, a blockchain-based euro that enables programmable payments.
The study found that there was a growing demand for payment solutions that eliminate the inefficiencies of current infrastructures, such as the SEPA or TARGET2 systems.
These systems were unable to address new business models due to complex data synchronisation processes, and counterparty risks from the asynchrony between delivery and payment.
The study also noted that the development of a digital euro by the European Central Bank (ECB) was not likely to happen before 2026.
It called on the private sector to develop the programmable euro instead.
The programmable euro will need a “technology-neutral legal framework”
Potential configurations for the programmable euro, as pointed out by the study, included stablecoins issued by unregulated companies, tokenised commercial bank money by financial institutions, tokenised e-money by e-money institutions, and trigger solutions based on conventional payment infrastructures and distributed ledger technology (DLT).
The study also noted that the programmable euro could support several use cases in the financial sector and the real economy.
This includes liquidity management and new lines of business in manufacturing, through pay-per-use and tokenisation, efficiency gains in supply chain management, smart contracts for the automated purchase and sale of electricity, DLT-based digital securities, and more.
“For all of these DLT applications, a programmable euro would represent an efficient payment option, enabling micropayments and digital DvP transactions (among others), providing the building blocks for the industry of the future,”
said Dr. Philipp Sandner, Head of the FSBC at the Frankfurt School of Finance and Management.
Finally, the study highlighted that cross-company and stakeholder collaboration was essential to the development of the programmable euro.
The success of DLT-based solutions depended on their interoperability, it said, calling for a “a far-sighted, transparent and technology-neutral legal framework.”
You Might Also Like
Bitcoin Capital Rolls Out New Crypto ETPs on the Swiss Stock Exchange
2021-12-06
Bitcoin Capital has expanded its crypto asset offerings by launching two new crypto exchange-traded products (ETPs) on the SIX Swiss Exchange.
German Regulator BaFin Grants Third Crypto Custody License to Tangany
2021-10-10
Tangany has received a license from the German Federal Financial Supervisory Authority (BaFin) as the third regulated service provider for the custody of digital assets in the country to provide crypto custody business. Furthermore, Tangany plans to apply for further licenses in Germany and Europe in the future and has already received preliminary permission from BaFin to manage registers of crypto securities.
Coinbase to Invest US$500 Million Into Crypto Assets
2021-09-21
American cryptocurrency exchange platform Coinbase announced that it has committed to invest US$500 million of its cash and cash equivalents into a diverse portfolio of crypto assets. Coinbase added that going forward, it will also allocate 10% of quarterly net income into this same portfolio.
MoneyLion to Offer Crypto Investment Ahead of SPAC Merger
2021-09-16
US-based neobank MoneyLion announced the launch of its new cryptocurrency capabilities, enabling customers to buy and sell digital currencies within its app. MoneyLion said that eligible customers will initially be able to buy and sell Bitcoin and Ethereum, as well as round-up their debit card purchases in Bitcoin.
Blockchain-Based Invoice Factoring Firm Hiveterminal Expands to DACH Region
2021-09-15
Blockchain-based invoice factoring platform Hiveterminal announced that it has expanded to the DACH region as part of its Europe growth plans. Hiveterminal aims to start cultivating relationships with Swiss-based small and medium-sized enterprises (SMEs) who need fast and continuous access to liquidity without going through the hassle of applying for bank financing.
Nassim Taleb Now Calls Bitcoin Worthless, Too Volatile to be a Useful Currency or Store of Value
2021-07-23
Not only does bitcoin fail to satisfy the notion of being a currency without a government, but the cryptocurrency is also not a reliable inflation hedge nor a safe haven investment, Nassim Nicholas Taleb, a probability researcher and former quantitative trader, says in a recent paper.
Facebook Pay To Be Available to Online Retailers Starting With Shopify
2021-07-21
With digital payments picking up pace across the globe, social media giant Facebook is extending its payment services to online retailers. Shopify has become the first e-commerce platform to sign up for Facebook Pay. This will allow Shopify merchants to offer Facebook Pay as a payment option during checkout, eliminating the need to re-enter payment information for every transaction.
Visa Customers Spent More Than US$1 Billion on Crypto-Linked Cards in 2021
2021-07-09
Visa revealed that its customers had spent more than US$1 billion on its crypto-linked cards in the first half of 2021. The payments giant reported that it had partnered with 50 leading crypto platforms on card programmes that make it easy to convert and spend digital currency at 70 million merchants worldwide.
Tags: Blockchain/Bitcoin,Featured,Germany,newsletter,payments