German Union Group Announces Incorporation of Blockchain Technology Into Public Services
The adoption for the application of blockchain technology is still increasing, creating a sense of hope for the technology and also for cryptocurrency by extension. The application isn’t only being used by businesses and institutions alone but also governments and political groups. This is usually done to improve effectiveness, efficiency and also transparency within these groups and now, a new use for the technology has now come from Germany.
The CDU and CSU
According to a recently published announcement, called “Investing in the Digital Future”, the CDU and CSU Union have decided to incorporate blockchain technology into public services. The union is a centre-right Christian democratic political alliance of two of Germany’s political parties which are the Christian Democratic Union of Germany (CDU) and the Christian Social Union in Bavaria (CSU).
Making the announcement on their official website, the union wants to use blockchain to improve services like registration and document protection, electronic health records and administrative services. The union also intends to float a new company, like a subsidiary, which will use experts to provide digital and encrypted identification.
Furthermore, the union group is interested in supporting star-ups as much as possible with their new initiative. As explained on the page:
“In order to keep pace with developments in the field of digitization, start-ups need good framework conditions to implement innovative ideas and to grow with their start-up. The Union Group is therefore committed to a comprehensive startup promotion.”
Support of a State Currency
The Union Group, especially its members with blockchain expertise along with Nadine Schön who is the vice-president for Digital Policy, also think that the creation of a state digital currency is a great idea. Described as an e-euro, they believe a project like that should, however, be a stablecoin backed to the Euro which would make it more easily regulated. The currency would be directly under the control of the central banks and would be spent
“via commercial banks crypto-tokens that handle them as demand deposits.”
Generally, it would seem like this isn’t much of an option for the European Central Bank (ECB). Refusing to comment on the particular proposal from the Union Group, the ECB’s position is most likely the same with that of the Central Bank of Germany, the Bundesbank.
About a month ago, the Bundesbank president, Jens Weidmann, said that the use of a Central Bank Digital Currency (CBDC) would be a bad idea, describing it has something that would result in “potentially serious effects” on the economy and the finance system in general.