Victor Ugochukwu · Oct 27, 2020 . 6min read
168-year old Banknote Printer G&D to Issue CBDC’s for Central Banks
Giesecke & Devrient,a 168-year old Banknote Printer,made its first investment in blockchain with Metaco,plans to issue CBDC for Central banks.
By Komal Joshi · Aug 25, 2020 . 8min read
Giesecke & Devrient, a 168-year old Banknote Printer, will be issuing digital currencies for central banks, according to Forbes. Giesecke & Devrient is still in the paper money business. However, now it is also supporting digital payments. G&D was established by enterprising young artisans Hermann Giesecke, and Alphonse Devrient, in Leipzig in 1852. That year the printers won their first relevant contract with the Bank of Weimar in the Grand Duchy of Saxe-Weimar-Eisenach to produce the 10-thaler banknote.
The identification of the German company is for its continuous innovation regarding banknotes. Back then, Armenia was looking to replace its 1,000 to 100,000 denomination drams after 20 years. Therefore, G&D utilized a new polyester and paper substrate so that the currency would be more than two to three times more durable than its old money. The company has started providing so-called covert security features. It includes code printed on the paper with a laser. The reading is with the help of sensors under infrared light and ultraviolet fluorescents printed directly into the visible artwork.
46% of G&D’s $2.9 billion in revenues grew from its currency technology division, including its banknote design and printing services, last year. It engages 4,800 people and operates with 145 of the world’s 195 central banks. Leading a $17 million Series A funding, the 168-year-old printing company made its first investment in the blockchain with Metaco. Metaco is a Swiss startup offering custody services for bitcoin and stablecoins. Moreover, Metaco is the leading provider of security-critical infrastructure enabling financial institutions to enter the digital asset ecosystem. It declared that it is using Aon and a group of Lloyds of London underwriters for custody services. They can offer “crime-protection” insurance for Digital Assets held in Metaco’s Crypto-wallet. Moreover, Aon is the world’s second-largest insurance broker. .
Giesecke & Devrient’s Software Filia for Central Bank CBDC’s
G&D made its interest in the digital currency known when it issued a white paper called “Digital Money.” The inherent risk of handling paper money in the wake of Covid-19 has stimulated cashless trends. The trend is mostly active in developed nations like the USA. Moreover, the demand for payment apps like Venmo, Zelle, and Square’s Cash App has increased.
Giesecke and Devrient’s revealed its new software in 2019, dubbed Filia. It enables central banks to utilize distributed ledger technology to issue digital versions of their currency. G&D’s central bank clients are recently in negotiations about using Filia to develop their own CBDC (central bank digital currency). According to CEO Ralf Wintergerst, the money creation business is on the verge of a technological revolution that merges the best of the physical world with the virtual world.
G&D states that central bank digital currencies (CBDCs) could reduce commercial bank intermediaries’ requirements. Additionally, the currency could be issued immediately. It would not depend on a depository institution. Thus, citizens would hold an account immediately with their nation’s central bank. This would help in banking the unbanked as the citizens will require smartphones to access digital currencies.
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Victor Ugochukwu · Oct 26, 2020 . 5min read