at the bundesbank, it ’ s all about moving further along the learning curve. we are running hands - on, practical experiments to explore whether, and if so, how, a blockchain - based application can feasibly be used to settle securities transactions. the prototype we have developed in conjunction with deutsche borse works. it can settle payments, both delivery - versus - payment ( dvp ) and free - of - payment ( fop ) securities transactions, and it can process straightforward capital measures such as interest payments and redemptions of maturing bonds. the challenge we are facing now is to engineer the prototype to a degree that yields robust insights into its performance. being a provider of market infrastructure, we are naturally curious to know whether the technology is scalable, what it will really cost when it ’ s up and running, which technical issues might crop up when settling large numbers of trades, and much more besides. in our view, it has not yet been proven beyond doubt that blockchain - based settlement systems are superior to the methods in use today. that ’ s why we ’ re open - minded about this issue – as i said earlier, we are looking to learn more. but we ’ re not looking to compare apples and oranges, 2 / 4 bis central bankers'speeches hence our efforts to base the experiment on today ’ s real - world conditions. blockchain needs to fit into the real world, not vice versa. earlier on, i mentioned the sense of disillusionment which has now clouded many blockchain projects. but let me reiterate our commitment to exploring these issues with an open mind – it would be wrong to overlook any opportunities that might arise. just remember : the first motorised seagoing vessels lagged behind the fastest sailing boats of the day. but field testing improved that technology to such an extent that no - one today would seriously regard sailing boats as a realistic means of transporting goods by sea. remember, too, that we tend to follow set behavioural patterns and pigeonhole issues according to our existing business models and processes. it might be that we don ’ t yet grasp the merits of a new technology because they only really come to the fore in different business models or processes. perhaps merely discussing the new technology will spark the emergence of new business models and more efficient settlement models. in short, new technologies – and by that i mean blockchain and beyond – offer opportunities which we need to explore with

andreas dombret : the euro area navigates rough seas - where is europe heading? speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the parliamentary evening at the bundesbank's regional office in hamburg, schleswigholstein and mecklenburg - vorpommern, hamburg, 7 june 2017. * * * 1. introduction ladies and gentlemen i am delighted to be here this evening to talk to you about the future of the euro area. here in hamburg, germany ’ s largest sea port, it seems quite fitting to ask where europe is heading. these days, europe ’ s reputation is suffering somewhat – uncertainty and political risks are casting a shadow on europeans ’ self - image. against the backdrop of brexit and an apparent resurgence of nationalism and populism, politicians and the general public alike are starting to ask : “ where is europe heading? " the european union is facing criticism on all fronts at present. why is this? what are the roots of the seemingly ever - increasing levels of euro - scepticism and reform fatigue? what lessons can and must we learn from the dissatisfaction of large numbers of people? how can we counter calls for more nationalism and less europeanism? i believe we must deal constructively with euro - scepticism. this involves finding areas in which we can start making improvements. i am emphatically not talking about making intellectual u - turns. what really matters is bringing about a change of course and sticking to it. and that is why it is equally important to take an unbiased view of the chances of successful reform in europe. 2. navigating rough seas – european and global challenges ladies and gentlemen, the result of the us presidential election and the unexpected brexit decision in the united kingdom are just two examples that show that many of the general public ’ s reservations and concerns have been underestimated for too long. and yet, in europe, too, a tendency to revert to nationalism is not a completely new phenomenon. even when the eu was being established, many member states had misgivings about transferring sovereignty to international institutions. and these concerns come to the fore again every time powers at the european level are expanded. but we should not be under any illusion – over the last few years, protectionist policies have gained more political traction than in the past. protectionists believe that trade barriers will bring jobs back as well as boost growth and employment.