German Bank To Test Blockchain In Burkina Faso
KfW, one of the major federal banks in Germany, will conduct blockchain transactions with the Ministry of Finance of the West African state Burkina Faso. The countries plan to test distributed ledger technology (DLT) in the field of public finance management, according to the press release.
For this purpose, the German bank will apply its own development called TruBudget. It is an open-source blockchain app by means of which financial institutions hope to reduce lengthy accounting procedures and also ensure that the budget funds are used for the intended purpose.
Usually, banks open branches in the destination country to avoid risks when conducting international operations. However, with blockchain, it won't be necessary since distributed ledger can be used to control processes even at a distance, Joachim Nagel, a KfW representative, asserts. He added that the technology provides a transparent relationship between the parties and allows using funds safely.
TruBudget users will be able to confirm and store government contracts on the platform. The partners will be assisted by the international companies BearingPoint and Accenture during the test phase. It is noteworthy that the latter began to use blockchain previously to record computer software licenses.
The press release does not indicate when exactly the countries will start testing the banking blockchain platform, but it is known that the pilot phase will last six months. Besides, the German government has allocated 1 million euros ($1.14 million) for the project and does not exclude possible cooperation with other African countries.
Earlier, an Arab company announced the launch of a financial corridor to Asia on the Ripple blockchain.