Constantin Drott is payment expert in the Directorate General Payments and Settlement Systems of the Deutsche Bundesbank. His work covers the analysis of financial market infrastructures, digital money, crypto tokens and distributed ledger technology. He joined Deutsche Bundesbank in 2018. During a secondment to the Reserve Bank of Australia in Sydney, he was engaged with regulatory issues in retail payments. He studied economics at the University of Würzburg and the University of Gent.

Deutsche Bundesbank is the central bank of Germany

Wholesale CBDC - Empowering central bank money for a digital future

Wholesale CBDC goes beyond the concept of central bank reserves.  It´s about keeping central bank money settlement safe, efficient and fit-for-purpose. Especially when the financial sector faces new technologies such as distributed ledger technology (DLT), central banks need to pay attention. Given the opportunities presented by DLT, the question arises as to how the cash-side settlement of DLT-based transactions can be realised. So-called trigger solutions describe one promising solution approach. They connect the DLT world with conventional payment systems and enable the settlement of tokenised assets in central bank money – simple to implement and almost free of risk.