LFDT-European-Chapter
LF Decentralized Trust European Chapter - December 2025 Community Call
In this session, Dr Besfort Shala from Deutsche Bundesbank explores how distributed ledger technology (DLT) is shaping the future of central banking. You can watch the session on Youtube:
The talk focuses on the Trigger Solution, an interoperability approach developed by Deutsche Bundesbank to enable the settlement of DLT-based financial transactions in central bank money. Dr Shala shares insights from hands-on work on wholesale central bank digital currency (CBDC) and ongoing research related to the Digital Euro, covering both retail and wholesale use cases. He is joined by Dr Erol Kazan, DLT Innovation Manager at Deutsche Bundesbank, who discusses broader DLT exploration activities, including tokenisation, zero-knowledge technology, interoperability, and internal DLT infrastructure supporting multiple business domains.
Key topics covered:
Wholesale CBDC and its role in DLT-based financial markets The Trigger Solution is a bridge between market DLT platforms and traditional payment systems Interoperability models within the Eurosystem Programmability, settlement finality, and operational considerations Future directions for DLT in central banking beyond experimentation
This discussion is part of the LF Decentralized Trust European Chapter initiative, bringing together practitioners, researchers, and institutions working on secure, transparent, and efficient digital finance.
Subscribe for more expert conversations on DLT, digital currencies, and financial infrastructure innovation. Find out more about the European Chapter at:
https://github.com/LFDT-Regional-Chap…
[4:34] Welcome and participant join [8:00] Introduction to LF Decentralized Trust European Chapter [9:19] Guest introduction: Dr Besfort Shala and Dr Erol Kazan [10:04] Deutsche Bundesbank and Digital Euro division overview [12:38] Advancing DLT in central banking: session overview [13:10] Retail vs wholesale CBDC explained [14:26] Why DLT matters for financial institutions [15:44] Eurosystem approach to DLT interoperability [16:20] Interoperability solutions overview [17:14] The Trigger Solution explained [17:28] Alternative Eurosystem solutions: Italy and France [18:13] Market experimentation and feedback [19:06] From exploration to production: Project Pontis and APIA [20:14] Bundesbank DLT strategy and objectives [21:47] Trigger Solution architecture overview [22:01] Market DLT platforms and asset trading [23:15] End-to-end transaction flow walkthrough [24:40] Performance and throughput discussion [26:34] Technology stack: Hyperledger Fabric [27:18] APIs, automation, and participant nodes [28:18] Trigger Solution big picture architecture [30:30] Interoperability protocols and HTLC [30:37] Transaction finality and double spending [32:08] Why use blockchain instead of a gateway [33:06] Programmability as a core design driver [34:44] Smart contracts on the Trigger Solution [36:11] Security, isolation, and risk management [38:12] Atomicity and endorsement discussion [40:07] CBDC, regulation, and policy implications [42:00] Why Hyperledger Fabric over other frameworks [43:08] Transition to broader DLT initiatives [44:08] Bundesbank IT division and DLT exploration [45:04] Avoiding fragmentation across departments [46:18] Tokenisation and interdisciplinary use cases [47:08] DLT stack: EVM, zero-knowledge, and layered architecture [49:04] Performance benchmarks and future scalability [50:10] Supported business use cases today [51:34] Interoperability challenges and approaches [53:38] Internal buy-in and organisational adoption [56:48] Collaboration with market participants [59:03] Digital identity considerations [59:45] Zero-knowledge proofs and compliance [1:02:36] Privacy-preserving access and visibility [1:03:05] Closing remarks and next community events