Using Blockchain to Coordinate Federal Processes: The Case of Germany’s Federal Office for Migration and Refugees

(a) Situation faced: The German asylum procedure requires close cooperation and information exchange between various authorities at the municipal, state, and federal levels. Federal separation of competencies inhibits the delegation of process governance to a central authority such as the Federal Office for Migration and Refugees (BAMF). This separation also leads to regional differences as federal laws govern the procedure’s general steps, whereas state laws govern implementation. Moreover, existing solutions for cross-organizational collaboration are limited in terms of flexibility, security, and data quality. As a result, the exchange of certain data on asylum procedures still occurs using Excel spreadsheets and e-mails. (b) Action taken: Against this backdrop, the BAMF explored technological options that would support the decentralized governance of the asylum procedure. After a preliminary evaluation, the BAMF decided to explore a solution based on blockchain technology. Building upon a successful proof of concept, the BAMF initiated a pilot project with Saxony’s central immigration authority. This project aims to develop a blockchain solution that supports the coordination of asylum procedures and can be easily adapted to local differences and functional requirements. (c) Results achieved: The use of the blockchain solution allows for efficient, secure, and timely distribution of status information. It supports communication and improves coordination between authorities. Despite an apparent conflict between blockchain principles and data privacy requirements, the BAMF’s design complies with relevant regulation (notably the GDPR). As a first-of-its-kind project, it outlines best practices and provides valuable insights into opportunities and challenges arising from the use of blockchain in the public sector. (d) Lessons learned: The BAMF’s case demonstrates that blockchain solutions can be promising alternatives when the delegation of process governance to a central party is not desirable and when federal principles of organization are to be reflected technologically. However, blockchain projects require special attention to managing know-how and capabilities, software development activities, stakeholders, the regulatory context, and cross-organizational governance.